Institutional Investors Achieve Enhanced Liquidity and Stability Through Ondo-Figure Collaboration

Ondo Finance, a U.S.-based company focused on bringing traditional financial assets onto the blockchain, has committed $25 million to Figure Technology Solutions’ yield-generating stablecoin YLDS to support its tokenized U.S. Treasuries fund

. This initiative is intended to broaden the asset base supporting the Short-Term US Government Bond Fund (OUSG), which already holds tokenized Treasuries from leading asset managers such as , Fidelity, and Franklin Templeton . Tailored for institutional investors, the fund provides round-the-clock redemption options and an estimated annual yield of 3.68%, with a total value locked (TVL) of about $777 million at the time of writing .

This collaboration highlights the increasing adoption of blockchain in crypto-backed lending, as more infrastructure is used to connect traditional and digital finance. Figure, which utilizes its Provenance blockchain, has

spanning home equity, mortgages, and crypto-secured credit. Its YLDS stablecoin, with a market cap near $100 million , now plays a central role in OUSG’s approach to boosting returns while ensuring stability.

Michael Tannenbaum, Figure’s CEO, noted that this alliance enhances YLDS’s standing in the tokenized real-world asset (RWA) sector, stating, " " in the RWA market. Ian De Bode, President of Ondo Finance, commented that the investment " " for institutional investors.

This investment comes after Figure’s Nasdaq IPO earlier this year and fits with Ondo’s ongoing push into on-chain financial services. In October, Ondo

, adding more than 100 tokenized stocks and ETFs from Wall Street. The company also recently to provide tokenized stocks in Europe.

This agreement is part of a larger trend of growth in crypto-backed lending, with companies like Block Earner and Ledn

. , another significant player, recently , and centralized exchanges are by offering a broader range of crypto-backed lending products.

For Figure, this partnership demonstrates institutional trust in its blockchain technology. The company

, beating analyst forecasts, and Mizuho analysts increased their price target for Figure’s shares to $56 from $47 . At the same time, Ondo’s strategic use of YLDS in OUSG that blend tokenized Treasuries with yield-generating stablecoins, offering investors both flexibility and security.

As the boundaries between crypto and traditional finance continue to blur, collaborations like the one between Ondo and Figure are set to play a crucial role in bringing on-chain finance into the mainstream. By harnessing blockchain’s transparency and efficiency, these advancements could transform how institutional investors engage with and manage real-world assets in the digital era.