Ondo Finance, working alongside BlackRock (NYSE: BLK) and Securitize, (NYSE: SECZ) has put forward its tokenized US Treasuries product, OUSG, as a candidate for Sky’s Spark Tokenization Grand Prix. The initiative, run by the protocol formerly known as MakerDAO, seeks to bring roughly $1 billion in tokenized traditional assets into the Sky ecosystem.
The proposal positions OUSG as a way to diversify Sky’s real-world asset holdings and strengthen backing for sUSDS, the yield-bearing version of the USDS stablecoin.
Ondo framed the product as a practical bridge between crypto-native capital and institutional-grade Treasury exposure.OUSG is structured as an on-chain fund that tracks short-term US government securities.
At the time of the submission, a large share of its holdings sat in BlackRock’s BUIDL fund, the tokenized money-market vehicle administered by Securitize.
The partners said they were also exploring direct conversions between OUSG and BUIDL so Sky could move between the two products if both were approved.
Ondo highlighted several operational features.
Subscriptions and redemptions were designed to run around the clock, with daily capacity initially set at $25 million and slated to rise.
Interest was to accrue daily.
The product was available in rebasing and non-rebasing versions and already lived on more than one chain, including Ethereum and Solana.
2/ OUSG: Building with BlackRock
We are proud to collaborate with @BlackRock and @Securitize to submit the OUSG application to the Sky Ecosystem. OUSG is the first peer-to-peer transferable fund onchain and offers lower minimums & fees, instant investment & redemption 24/7, and…
— Ondo Finance (@Ondo) September 23, 2024
Fees were described as comparatively low, and minimums were lower than those attached to some purely institutional vehicles.
Carlos Domingo, co-founder and CEO of Securitize, said the joint application showed how a crypto-native issuer and traditional asset managers could work together.
He argued the combination of Ondo’s distribution and technical stack with BlackRock and Securitize’s infrastructure could deliver competitive yield and liquidity for Sky.
Nathan Allman, founder and CEO of Ondo, presented OUSG as a long-term partner product rather than a one-off allocation, emphasizing its potential role in making sUSDS a leading on-chain savings instrument.Ondo also pointed to its track record.
The firm described itself as one of the larger operators in on-chain real-world assets, with hundreds of millions of dollars already deployed across OUSG, the more accessible USDY product, and related infrastructure such as Flux Finance.
It argued that experience managing permissioned securities at scale would help Sky avoid early-stage operational friction.
The Grand Prix itself was an open process.
Multiple issuers submitted tokenized funds, credit products, and other instruments.
Sky’s goal was not simply to park idle reserves in Treasuries but to assemble a diversified, liquid portfolio that could support stablecoin issuance and generate yield without relying solely on crypto-native collateral.
Whether OUSG ultimately received an allocation depended on Sky governance.
The proposal nevertheless illustrated a broader pattern: traditional asset managers, specialized tokenization platforms, and DeFi protocols were beginning to treat one another as complementary rather than purely competitive.
OUSG wrapping a portion of BUIDL while offering easier access and 24/7 liquidity was a concrete example of that layering.
For Sky, the appeal was practical.
Tokenized Treasuries can provide a relatively stable yield sleeve, reduce reliance on volatile crypto collateral, and still remain usable inside DeFi systems that accept eligible tokens.
For Ondo, BlackRock, and Securitize, a large allocation from one of DeFi’s oldest and largest stablecoin protocols would have been a visible endorsement of their combined model.
The submission therefore sat at the intersection of two trends: the migration of short-duration government paper onto public blockchains, and the effort by established DeFi systems to professionalize their reserve management.