Ondo Finance Expands to Cosmos, Unlocking Broader Accessibility to Tokenized Real-World Assets

RWA tokenization platform Ondo Finance has partnered with Cosmos-based Noble chain to expand its offerings into the Cosmos ecosystem. Ondo, a major player in the tokenized Treasury market, aims to bring its tokenized U.S. Treasury products to Cosmos' network of over 90 blockchains. The first asset to be issued natively via Noble is USDY, a tokenized note backed by short-term U.S. Treasuries with a 5.2% annual yield, targeting the end of the second quarter of this year.

Ondo Finance Expands to Cosmos, Unlocking Broader Accessibility to Tokenized Real-World Assets

In a groundbreaking move, Ondo Finance, a leading platform in the burgeoning tokenized real-world asset (RWA) market with over $300 million in deposits, has announced a strategic partnership with Cosmos-based Noble chain. This transformative alliance heralds the arrival of Ondo's tokenized products within the vast Cosmos ecosystem, empowering users with unparalleled access to a diverse range of investment opportunities.

The partnership between Ondo and Noble will initially focus on the issuance of USDY, a highly sought-after tokenized note backed by short-term U.S. Treasuries. Offering a compelling annual yield of 5.2%, USDY has captivated investors seeking stable returns in the volatile cryptocurrency landscape. Ondo plans to issue USDY natively via Noble, targeting the end of the second quarter of this year.

Ondo's expansion into Cosmos marks a significant milestone in the tokenization of RWAs. By integrating with over 90 blockchains within the Cosmos ecosystem, Ondo's token offerings will reach a vast and rapidly growing community of users. This strategic move will dramatically boost the adoption of Ondo's products, backed by the unwavering stability of U.S. Treasuries, as a secure and profitable asset for savings, payments, and collateralization.

Cosmos, hailed as the "internet of blockchains," serves as a robust interoperability network that seamlessly connects individual blockchains. Notable projects within the Cosmos ecosystem include dYdX, Celestia, Sei, and Injective. Noble, an application-specific chain within the Cosmos ecosystem, offers a tailored platform for issuing native digital assets. Ondo will leverage Noble as a "routing hub" for liquidity within the Cosmos ecosystem, enabling efficient and frictionless exchange of tokens among various blockchains.

Nathan Allman, the visionary founder of Ondo Finance, expressed his enthusiasm for the partnership with Noble, emphasizing its potential to enhance the utility and liquidity of tokenized assets. "Having Noble as our issuance partner will unlock a world of possibilities for appchains and their users," said Allman. "Not only will it bring unprecedented access to yielding instruments, but it will also foster a vibrant and interconnected tokenized economy."

Ondo Finance stands as a dominant force in the thriving $1.2 billion tokenized Treasury market, which has witnessed remarkable growth in recent times. Crypto investors and digital asset companies alike have embraced the opportunity to safeguard their blockchain-based cash holdings while reaping the benefits of passive income generation. Ondo's tokenized offerings have garnered tremendous traction since their introduction in early 2023, attracting over $300 million in deposits.

The partnership between Ondo and Noble further underscores the growing convergence between traditional finance and the burgeoning world of digital assets. Recently, BlackRock, a titan of traditional asset management, joined forces with Securitize to venture into the tokenized Treasury space with BUIDL, a token backed by U.S. Treasuries. Ondo currently utilizes BUIDL to underpin its OUSG token.

As the tokenization of RWAs continues to gain momentum, Ondo Finance and Noble stand poised to play a pivotal role in shaping the future of this innovative financial landscape. Their partnership represents a transformative step towards democratizing access to yield-generating assets and fostering a more inclusive and accessible financial ecosystem.