Wellington Management, an asset manager with over $1 trillion in assets, has announced a partnership with Ondo Finance, a collaboration aimed at supporting intraday redemptions for newly unveiled tokenized U.S. Treasury funds.
Ondo is a decentralized finance protocol that is seeing rapid growth in the tokenized asset market.
Ondo and Wellington join forces for new tokenized fund
The fund in question is the Delta Wellington Ultra Short Treasury On-Chain Fund (ULTRA), launched by Standard Chartered-backed tokenization platform Libeara in partnership with fund management infrastructure firm FundBridge Capital.
The Delta Wellington Ultra Short Treasury On-Chain Fund is active on the Ethereum blockchain. However, the publishers have plans to expand this to Arbitrum, Avalanche and Solana. Wellington Management’s partnership with Ondo Finance will see Ondo Finance provide the technology to enable intraday repayments.
1/ Wellington Management partners with Ondo Finance to offer intraday redemptions for tokenized US treasury funds.
Wellington Management (@Wellington_Mgmt) One of the world’s largest independent asset managers with over $1 trillion in assets has partnered with Ondo Finance. pic.twitter.com/dy1tefMxxM
— Ondo Finance (@OndoFinance) October 30, 2024
This allows investors to enter and exit positions at any time. Ondo and Wellington see this as an important step in improving the fund’s usability across web3.
“By enabling 24/7 liquidity, Ondo Finance ensures that tokenized assets can be used as collateral and used most effectively for cross-border payments, including across the digital asset ecosystem,” said Nathan Allman, CEO of Ondo Finance. name.
Ondo has Ondo US Dollar Yield (USDY) and Ondo Short Term US Government Bond Fund (OUSG), which are the top two tokenized US government bond funds.
According to rwa.xyz, the market caps of USDY and OUSG are $444 million and $205 million, respectively. However, this is noteworthy in a market currently worth just over $2.43 billion.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is the largest, with over $533 million.