DeFi firm Ondo Finance launched a tokenized fund on Jan 10 that allows stablecoin holders to invest in bonds and US Treasuries.
They offer three products: US Government Bond Fund (OUSG) that offers an annual percentage yield of 4.62%, Short-term Investment Grade Bond Fund (OSTB) that provides a slightly higher APY of 5.45%, and High Yield Corporate Bond Fund (OHYG) that offers gains of 8.02% annually.
The management fee charge by Ondo Finance is 0.15% annually. The goal of the firm as per CEO Nathan Allman is to make it quick and easy for investors to convert back and forth between stablecoins and traditional assets with an emphasis on highly liquid and low-risk products like short-term US Treasuries.
This is because it bridge the gap between low and risky on-chain yields with safer and higher-yielding alternatives.
Ondo had raised $20M in a Series A round led by Peter Thiel’s Founders Fund and Pantera Capital in April 2022 and later raised an additional $10 million through public token sales in the same year.
