Tokenization startup Ondo Finance has launched a novel way to enable the 24/7 redemption of third party money market funds (MMF). It has collaborated with Franklin Templeton, WisdomTree, Wellington Management (Sg) and FundBridge Capital to include their tokenized money market funds (MMF) as collateral for its own MMF, OUSG. As part of its new Ondo Nexus offering, if someone wants to redeem the Franklin Templeton FOBXX, they essentially sell it to Ondo which is happy to hold it in the short term, given it can be used as collateral for OUSG.
Until now OUSG was primarily backed by BlackRock’s tokenized MMF BUIDL.
This looks like a win-win for both Ondo and the asset managers. It solidifies Ondo as an innovator, and we would be shocked if money wasn’t passing its way for providing the service to the asset managers, even if it means the asset managers wave some of the fees they might otherwise charge Ondo.
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