Ondo Finance Introduces Instant Conversions Between Its Tokenized Short-Term U.S. Treasuries Fund and the Stablecoin PayPal USD

According to an announcement, investors will soon be able to convert in and out of Ondo’s (ONDO) core product – the Ondo Short-Term U.S. Government Treasuries.

DeFi protocol Ondo Finance has announced the integration of PayPal USD (PYUSD) with its tokenized short-term U.S. treasuries fund.

The integration will allow investors to instantly convert in and out of the Ondo Short-Term U.S. Government Treasuries fund using PYUSD, according to an announcement Monday.

Ondo’s U.S. government treasuries fund, known as OUSG, has its portfolio largely in the BlackRock USD Institutional Digital Liquidity Fund.

The move comes a day after PayPal announced that users can now move PYUSD across Ethereum and Solana via LayerZero.

With the launch of the feature, PYUSD holders will now be able to access further use cases, such as investing in or exiting their OUSG positions.

The service will be available 24/7 and aims to improve the fund’s redemption liquidity and increase the stablecoin’s utility within the real-world assets market.

“We are excited to be at the nexus of the convergence between traditional finance and DeFi,” said Nathan Allman, chief executive officer of Ondo Finance, in the announcement.

“Ondo Finance’s introduction of the instant conversions between PYUSD and OUSG comes as the tokenized real-world assets space marks a period of accelerated adoption,” the announcement adds.

Products such as OUSG and BUIDL are seeing increased interest from qualified investors as they seek new opportunities at the intersection of crypto and RWAs.

These products offer tokenized cash equivalents and low risk but high yield from money market funds and U.S. treasuries, making them attractive to investors seeking stable returns.

According to data from RWA.xyz, the global tokenized U.S. treasuries market has grown from just over $100 million at the start of 2023 to over $2.3 billion.

Meanwhile, the total RWA on-chain market currently stands at over $13.1 billion, with growth coming as issuers such as BlackRock and Franklin Templeton expand core products to multiple blockchain networks.