KEY TAKEAWAYS
- Wellington Management partners with Ondo Finance to launch a tokenized U.S. Treasury Fund, enhancing institutional-grade liquidity.
- Ondo Finance provides 24/7 redemption technology, crucial for using the fund as collateral and enabling seamless cross-border settlement.
- The Delta Wellington Ultra Short Treasury On-Chain Fund’s Aa rating by Moody’s highlights the security and stability of tokenized assets.
- Ondo Finance positions itself at the forefront of integrating traditional and onchain finance, collaborating with asset managers for real-time redemption capabilities.
Wellington Management, a prominent independent asset manager with over $1 trillion in assets, has announced a partnership with Ondo Finance. This collaboration aims to bring institutional-grade liquidity to its newly launched tokenized U.S. Treasury Fund. The initiative is part of a broader effort led by Libeara, a tokenization platform backed by Standard Chartered’s SC Ventures, to integrate traditional assets into the blockchain ecosystem.
Through this partnership, Wellington Management has chosen Ondo Finance to provide technology that supports intraday redemptions. This feature is crucial for the fund’s use as collateral and for seamless cross-border settlement. Ondo Finance’s 24/7 redemption technology allows investors to exit their positions at any time, enhancing the fund’s utility within the Web3 ecosystem.
The Delta Wellington Ultra Short Treasury On-Chain Fund, which has received an Aa rating from Moody’s, represents a significant milestone in the acceptance of tokenized assets. The Aa rating underscores the security and stability of the fund’s structure, demonstrating that the tokenization process does not inherently alter the risk profile of traditional financial assets. This rating is pivotal for the sector, providing the credibility needed for institutional investors and paving the way for broader adoption of tokenized assets.
Ondo Finance’s Role in Onchain Finance
Nathan Allman, CEO of Ondo Finance, expressed enthusiasm about the partnership, stating, “By enabling 24/7 liquidity, Ondo Finance is ensuring that tokenized assets can be most effectively used as collateral and for cross-border settlement, including in the digital assets ecosystem.” The collaboration positions Ondo Finance at the intersection of traditional and onchain finance, as it continues to work with other leading asset managers on real-time redemption capabilities.
As traditional asset managers increasingly engage with blockchain technology, Ondo Finance is poised to facilitate the transformation of blockchain-powered asset management. The company is actively collaborating with other asset managers to enhance real-time redemption capabilities, with further announcements expected soon.
For more details, the announcement can be found here.
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