Ondo Finance Partners Noble to Bring Tokenized Treasuries to Cosmos

Ondo Finance has partnered with Noble to bring tokenized U.S. Treasury products to Cosmos.

USDY, a tokenized note backed by short-term U.S. Treasuries that offers a 5.2% annual yield, is the first asset Ondo plans to issue natively on Noble. The asset, which is available on Ethereum, Solana, Mantle, and Sui, is planned for Cosmos in Q2 2024.

By adding Cosmos to its list of partners, Ondo's tokenized products will be integrated into over 90 blockchains in Cosmos's ecosystem.

"Having Noble as our issuance partner will bring vastly improved utility and liquidity to appchains and their users, all while offering exposure to yielding instruments,” said Nathan Allman, founder of Ondo Finance.

Noble is a specialized chain in the Cosmos ecosystem that generates native digital assets. Ondo will leverage this chain as a "routing hub" for liquidity across the Cosmos ecosystem.

Ondo has $300 million of deposits, making it one of the largest players in the $1.2 billion tokenized Treasury market.

Tokenization continues to be a growing niche. Tether, the company behind the world's leading stablecoin USDT, announced its upcoming public tokenization platform earlier this week.

Tether's new platform will empower users to create tokenized versions of real-world assets. This means anything from traditional financial instruments like stocks and bonds to loyalty programs and even coffee shop reward points can be represented on a blockchain as a token.

Last month, Ondo announced that it is moving $95 million to BlackRock's new tokenized fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL).