Ondo’s early entry into the RWA (Real World Assets) market with US Treasury bonds can be seen as a unique and visionary move. US Treasury bonds are low-risk, stable, scalable assets that have become the biggest beneficiaries in the RWA race, with unlimited potential.
Ondo Finance is a top-tier RWA project that aims to tokenize investment in real world assets. In January 2023, Ondo launched its tokenized US Treasury bond fund, Ondo v2, which aims to provide institutional-level investment opportunities to everyone. Ondo brings low-risk, stable, scalable fund products such as US government bonds and money market funds to the chain, providing an alternative to stablecoins and allowing holders to earn most of the underlying asset benefits.
According to RWA.XYZ, the total market value of the RWA US Treasury bond market has increased from $110 million to $863 million, with Ondo’s market size reaching $125 million, ranking third after Franklin OnChain US Government Money Fund and Mountain Protocol.
Ondo has introduced tokenized products such as $OUSG, a tokenized US Treasury bond fund, and $OMMF, a tokenized money market fund, allowing stablecoin holders to invest in bonds and US Treasury bonds and earn a share of the tokenized fund. Ondo charges a management fee of 0.15% per year.
Furthermore, Ondo has partnered with the DeFi protocol Flux Finance to provide stablecoin collateralized lending services for tokens like $OUSG, which require authorization for investment. This allows for permissionless participation in the backend protocol.
Ondo’s tokenized products have gained traction in the market. $USDY, a stablecoin that allows non-US residents and institutions to earn interest on US Treasury bonds and bank deposits, has a TVL (Total Value Locked) of $65.37 million. $OUSG, a tokenized US Treasury bond fund for global institutional users, has a TVL of $114 million.
Ondo has a strong team with backgrounds in institutions such as Goldman Sachs, Fortress, Bridgewater, and MakerDAO. The project has received funding from top investors such as Pantera Capital, Genesis, Digital Currency Group, and Coinbase Ventures.
The ONDO token has a total supply of 10 billion, with over 85% of the tokens locked. Private investors and core contributors are locked for at least 12 months and will be released over the next four years. CoinList investors will be fully unlocked, accounting for a significant portion of the initial circulating supply.
Ondo faces challenges from competitors in the same field, such as Mountain Protocol and Centrifuge, as well as the need to expand its product offerings beyond US Treasury bonds. However, its early entry into the RWA market and its strong team and partnerships position it well for future growth.