Ondo Finance and Mastercard Team Up to Expand Tokenization Limits

Users can now access enhanced liquidity for tokenized assets and direct payment rails.

Ondo Finance and Mastercard have formed a strategic partnership to explore Real-World Asset (RWA) tokenization. Ondo is joining Mastercard’s Multi-Token Network (MTN) to digitize traditional assets like investment securities.

Ondo Finance and Mastercard Promoting RWA Tokenization

This partnership will enable Ondo’s Short-Term US Government Treasuries Fund (OUSG) to be available on Mastercard’s MTN. Businesses participating in MTN and working with Ondo Finance will gain advantages from this integration.

These businesses will experience enhanced cash management flexibility, supported by real-world assets, and will avoid the complexities of traditional finance. With OUSG, they can earn daily yield through tokenized assets with constant subscription and redemption access, eliminating the necessity for stablecoin on-ramps.

Moreover, MTN participants can settle payments using conventional banking rails without requiring extra crypto infrastructure, allowing for exceptional flexibility in cash management anytime, anywhere.

This integration provides an effortless way for businesses to incorporate tokenized treasuries into their operations. OUSG is more than just a tokenized form of short-term US Treasuries; it is the first composable on-chain treasury asset.

A significant benefit of OUSG includes lower minimums and fees compared to traditional investment avenues. It also features 24/7 instant investment and redemption, offering businesses control over their liquidity.

By connecting with MTN, OUSG allows participants to enhance their cash management strategies, unlocking fresh opportunities for working capital, trade finance, and liquidity requirements.

MTN is a blockchain developed by Mastercard to link financial institutions with businesses in a seamless digital space, simplifying the intricacies of domestic and cross-border transactions and enabling secure and efficient interactions between banks and businesses.

Overall, the integration of Ondo and Mastercard’s MTN marks a significant advancement for both digital and traditional finance. This partnership could redefine global liquidity management for businesses through merging Mastercard’s infrastructure with Ondo’s tokenized asset yield potential.

A Growing RWA Industry

The collaboration between Ondo and Mastercard illustrates the rising interest and expansion in the RWA market. Currently, over 150 tokenized asset issuers worldwide contribute to a tokenized asset market valued at more than $186 billion.

As highlighted in our latest report, the RWA tokenization sector witnessed significant growth in 2024, setting the stage for further development through the end of the decade. Projections suggest the market will reach $600 billion by 2030.

Recently, zkSync Era has also seen impressive growth in the RWA domain, becoming the second-largest blockchain for RWA with a 953.79% increase, reaching $2.03 billion in 30 days.

In February, Mavryk Dynamics secured over $5 million for its RWA network economy, a funding opportunity anticipated to stimulate the development of its Layer-1 blockchain that aims to democratize real-world asset ownership.