Ondo Finance has made a $25 million investment in YLDS, which is described as the yield-bearing stablecoin issued by Figure Certificate Company (FCC), a subsidiary of Figure Technology Solutions (NASDAQ:FIGR). This investment will now reportedly be used as part of the backing of the Ondo Short-Term US Treasuries Fund (OUSG), which is Ondo’s tokenized fund.
The addition of $YLDS will enhance and diversify the yield source supporting OUSG, complementing a portfolio currently “invested in funds issued by leading asset managers.”
This investment follows Figure’s IPO, marking a key milestone in their mission to enhance capital markets.
OUSG has grown into a product with over $780m in total value locked, delivering:
- Instant, 24/7 subscriptions and redemptions
- Daily interest accruals
- Low fees
Multi-chain support across Ethereum (ETH), Solana (SOL), Ripple, Polygon OUSG’s portfolio spans funds from the world’s asset managers, including:
- BlackRock’s BUIDL
- Fidelity’s FDIT
- Franklin Templeton’s BENJI
- WisdomTree’s WTGXX
- Wellington Management and FundBridge Capital’s ULTRA
- Figure’s YLDS
This investment strengthens the existing relationship between Ondo and Figure, whose tech and assets help enable participation in tokenized financial markets.
Michael Tannenbaum, CEO of Figure Technology Solutions said that this partnership potentially bolsters the role of “the $YLDS stablecoin in tokenized real world assets.”
Tannenbaum added that Ondo shares their belief that blockchain can transform how money moves, “making it faster, more transparent, and more inclusive.”
As both a partner and investor, he sees firsthand the “authenticity and alignment driving this collaboration.”
Building on the momentum of their IPO, the Ondo investment is “another step towards delivering on that vision.”
Ian De Bode, President of Ondo Finance said that their investment in $YLDS strengthens OUSG’s position as the “onchain vehicle for institutional clients.”
Bode also mentioned that Figure built infrastructure for “tokenized lending, and integrating $YLDS into OUSG’s yield strategy diversifies and institutionalizes the ecosystem supporting their products.”
They are pleased to deepen their partnership as they “work together to expand their products and serve institutions onchain.”
The collaboration builds on Figure’s $19 billion in blockchain-based lending of real world assets “on the Provenance Blockchain and Ondo’s global leadership in tokenized assets.”
The purchase will also reportedly support the growth of Figure’s ecosystem, particularly around Democratized Prime, where $YLDS is the “exchange collateral.”
Together, the two companies aim to enable “institutional adoption of onchain finance.”
