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Ondo Finance is moving $95 million to BlackRock's new tokenized fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
BUIDL, launched last week, offers investors the opportunity to earn yields through Securitize Markets.
Robert Mitchnick, BlackRock’s head of digital assets, said that the fund represents the "latest progression of [BlackRock's] digital asset strategy" and is part of the firm's initiative to develop "solutions in the digital assets space that help solve real problems for [their] clients."
BUIDL has attracted more than $160 million since its debut a week ago.
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Nathan Allman, CEO of Ondo Finance, revealed that the move will allow instant settlements for its own US Treasury-backed token, OUSG.
OUSG was previously backed by BlackRock's iShares Short Treasury Bond exchange-traded fund (ETF), which only traded during traditional market hours. Now on BUDL, traders can access the product 24/7 in line with the crypto market. Settlement time stands at any day from the T+2 days.
"The significant majority of this portfolio is currently in the BUIDL, with the remainder in BlackRock’s FedFund (TFDXX), bank deposits, and USDC for liquidity purposes," Ondo said on its website.
Allman added in an interview, "Many investors have been so far hesitant to use OUSG because of the time it used to take to redeem, and given the 24/7/365 and volatile nature of crypto markets and the often sudden need for capital that arises from that."
"OUSG will become significantly more usable as a store-of-value and collateral asset within the crypto ecosystem."
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BlackRock's IBIT, one of the strongest Bitcoin ETF offerings, broke records earlier this month by reaching $10 billion faster than any US ETF in history. The fund reached the milestone in under two months from 11 January when the SEC greenlit Bitcoin ETFs. Invesco QQQ previously held the record of just over a year.
IBIT also set another record by smashing through its daily trading volume, trading 99.3 million shares over the day, amassing $3.9 billion in volume. Its previous record was $3.7 billion on 5 March. The fund also set a net inflow daily record of $849 million on 12 March.
In January, Ondo Finance partnered with Rakkar Digital, marking its first custodian partner in APAC.
The collaboration aims to enhance institutional-grade digital asset management and custody solutions.
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