Ondo Finance, a leading tokenized asset platform has made a $25 million strategic investment in YLDS. The firm announced the initiative on Monday through an official blog post.
According to the statement, the YLDS is a yield-bearing stablecoin issued by Figure Certificate Company (FCC), a subsidiary of Figure Technology Solutions. More so, the investment is aimed at enhancing the Ondo Short-Term US Treasuries Fund (OUSG), Ondo’s flagship tokenized fund.
Ondo Finance stated that the inclusion of $YLDS will help boost and diversify the yield source supporting OUSG.
Also, Ondo Finance disclosed that the investment will help boost the relationship with Figure. The platform stated that it will utilize Figure’s infrastructure to facilitate broader participation in tokenized financial markets.
Furthermore, the latest move is directed at boosting the market appeal of OUSG which is currently gaining significant attention. Despite launching recently, OUSG has established itself as the flagship product of Ondo Finance, gathering about $780 million in total value locked (TVL).
In the announcement, the company mentioned how the OUSG enjoys a multi-chain functionality with support across networks like Ethereum, Solana, Ripple, and Polygon. On top of that, Ondo Finance revealed OUSG is gaining more acceptance thanks to its low network fees and instant finality.
Side note
Despite the recent market downturn, Ondo Finance has remained focused on establishing its presence in the emerging tokenized assets fund sector. Late last month, the company joined forces with Chainlink to work on how to bring more assets on-chain.
It is worth mentioning that the investment manifested just after Figure completed its IPO as part of its move to modernize the capital markets. According to Michael Tannenbaum, the CEO of Figure Technology Solutions, the partnership will also help bolster the dominance of $YLDS in the tokenized assets sector.
Tannenbaum emphasized that the new partners aim to make blockchain innovations more relevant in the world of finance. The CEO added that by building on the momentum of its just-concluded IPO, Figure is on the course to change existing narratives.
Likewise, Ian De Bode, President of Ondo Finance narrated that the investment in $YLDS will strengthen OUSG’s position as the leading on-chain vehicle for institutional clients. The president opined that “Figure has built robust infrastructure for tokenized lending, and integrating $YLDS into OUSG’s yield strategy further diversifies and institutionalizes the ecosystem supporting our products.”
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