Summary
TLDR: Ondo Finance transferred $95 million to BlackRock’s tokenized fund, BUIDL, to speed up settlements for their US Treasury-backed token, OUSG. This move addresses investor concerns about lengthy redemption times and leverages blockchain technology for faster transactions. BlackRock’s BUIDL fund is for institutional clients but can be used by platforms like Ondo Finance to bridge traditional finance and the crypto market.
Key Points
1. Ondo Finance transferred $95 million to BlackRock’s tokenized fund, BUIDL, marking the first instance of a crypto protocol utilizing such a fund for its offerings.
2. The shift to BlackRock’s BUIDL fund will expedite the subscription and redemption process for Ondo Finance’s US Treasury-backed token, OUSG, transitioning from traditional settlement times to instantaneous transactions.
3. BlackRock’s BUIDL fund, backed by US Treasury bills and repo agreements, is designed for institutional clients with a minimum $5 million investment, allowing platforms like Ondo Finance to leverage the fund for retail offerings and bridge the gap between traditional finance and the cryptocurrency market.