Wellington Management, an asset manager with over $1 trillion in assets, has announced a partnership with Ondo Finance in a collaboration that aims to power intraday redemptions for a newly unveiled tokenized US Treasury fund.
Ondo is a decentralized finance protocol that’s seeing rapid growth in the tokenized assets market.
Ondo and Wellington team up on new tokenized fund
The fund in question is the Delta Wellington Ultra Short Treasury On-Chain Fund, or ULTRA, which Standard Chartered-backed tokenization platform Libeara launched in collaboration with fund management infrastructure firm FundBridge Capital.
Delta Wellington Ultra Short Treasury On-Chain Fund is live on the Ethereum blockchain. However, the issuers have plans to expand it to Arbitrum, Avalanche and Solana. The partnership between Wellington Management and Ondo Finance will see the latter offer the technology that will enable intraday redemptions.
1/ Wellington Management Partners with Ondo Finance to Provide Intraday Redemptions for Tokenized US Treasury Fund
Wellington Management (@Wellington_Mgmt) one of the world’s largest independent asset managers with over $1 trillion in assets, has partnered with Ondo Finance to… pic.twitter.com/dy1tefMxxM
— Ondo Finance (@OndoFinance) October 30, 2024
With this, investors can enter and exit positions any time. Ondo and Wellington see this as a crucial step towards enhancing the fund’s utility across web3.
“By enabling 24/7 liquidity, Ondo Finance is ensuring that tokenized assets can be most effectively used as collateral and for cross-border settlement, including in the digital assets ecosystem,” Nathan Allman, chief executive officer of Ondo Finance, said in a statement.
Ondo has Ondo U.S Dollar Yield (USDY) and Ondo Short Term US Government Bond Fund (OUSG), two of the top tokenized US Treasuries funds.
According to rwa.xyz, USDY and OUSG have market caps of $444 million and $205 million respectively. However, that’s notable in a market currently at just over $2.43 billion.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is the largest at over $533 million.