RWAfi Platforms Ondo Finance and Plume Network Team Up to Expand Access to Tokenized U.S. Treasuries

The partnership between Ondo Finance (ONDO) and modular layer-1 blockchain for RWAfi Plume Network targets RWAfi.

Real-world assets finance (RWAfi) is expanding rapidly, and two key players in the space, Ondo Finance (ONDO) and Plume Network, are joining forces to bring Ondo’s tokenized U.S. Treasuries products to a wider audience.

The partnership will see products like the Ondo U.S. Dollar Yield (USDY) made available across the RWAfi ecosystem through Plume Network's modular layer-1 blockchain for RWAfi.

By combining Ondo's expertise in Treasuries-backed yieldcoins and Plume's RWAfi-tailored infrastructure, the two projects aim to simplify onboarding and capital integration. One of the initial steps in this collaboration will be the native issuance of Ondo's USDY on the Plume Network.

Launched in 2021, the flagship project of Ondo Finance, USDY, is currently the fourth largest tokenized U.S. treasuries product, with over $450 million in value spread across eight blockchains, according to data from rwa.xyz.

Hashnote's short duration yield coin, BlackRock's BUIDL and Franklin Templeton's Onchain U.S. Government Money Fund have their current total value locked at $1.8 billion, $621 million and $554 million, respectively.

The launch of USDY on the Plume Network will provide users of the platform with an APY of 4.65%. It will also expand access to the yieldcoin to global individual and institutional investors. The product is not available to U.S. investors through Ondo.

The collaboration not only presents an opportunity for the expansion of RWA use cases but also contributes to the broader growth of decentralized finance (DeFi).

According to Katie Wheeler, vice president of partnerships at Ondo Finance, the partnership will have a positive impact on the entire industry.

"Plume is creating a network effect of opportunities for RWA issuance, and having a composable, yield-bearing asset to power this economy is a boon for both the asset utility and the ecosystem as a whole," Wheeler said in a statement.

The Plume Network team has recently sealed several key partnerships and integrations, including with Google Cloud, Chateau Capital and on-chain private credit platform Credbull. Plume raised $20 million in its Series A round, which was led by Brevan Howard Digital, Haun Ventures, and Galaxy Ventures.