Ondo Finance to Bring RWAs to Mastercard Network

Ondo Finance has announced that it will be the first provider to bring tokenized real-world assets (RWAs) to Mastercard’s Multi-Token Network (MTN). This will allow businesses on MTN to access digital versions of US government bonds without needing to use stablecoin onramps or additional settlement steps. According to the official release, Ondo’s Short-Term US Government Treasuries Fund (OUSG) will be integrated into Mastercard’s blockchain-powered payment system. The initiative will enable businesses to earn daily yields on tokenized bonds with continuous accessibility.

Mastercard’s MTN is a digital financial network designed to connect banks and businesses, improving cross-border transactions and reducing settlement delays. With this integration, businesses can hold OUSG on a public blockchain while their payments settle through Mastercard’s traditional banking system. This setup eliminates the need for additional crypto wallets or specialized accounts, making access to tokenized treasuries as straightforward as managing traditional cash balances.

Ondo Finance’s Chief Strategy Officer, Ian De Bode,  stated that the partnership with Mastercard connects traditional payment networks to blockchain-based assets. He added that this will help banks operate globally around the clock using Ondo’s services. Ian De Bode, stated: “This partnership represents a landmark moment of connecting private payment network rails to tokenized assets on public blockchain networks. This connectivity will enable the banking ecosystem to move to 24/7 functionality on a global basis, powered by Ondo’s assets and services.”

MTN’s system supports secure and efficient financial operations for institutions, from international settlements to asset-backed liquidity. This development paves the way for OUSG to serve as collateral in business financing, trade deals, and treasury management worldwide. OUSG is designed to offer lower fees, instant transactions, and daily interest payouts, with most of its assets held in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), alongside investments from Franklin Templeton, WisdomTree, Wellington Management, and Fundbridge Capital. Additionally, OUSG is the first on-chain peer-to-peer transferable fund.

Raj Dhamodharan, Mastercard’s Executive Vice President for Blockchain and Digital Assets, emphasized the broader impact of this integration. He noted that the collaboration with Ondo Finance will create new opportunities in the digital asset space. He said: “We’re building on decades of proven success in payments to deliver unparalleled financial flexibility and 24/7 access to businesses worldwide. Our work with Ondo Finance is poised to open new doors in the ever-evolving digital assets ecosystem.”

The announcement has sparked various reactions across the market. A cryptocy enthusiast pointed out that ONDO stands out as one of the first cryptocurrencies being integrated by global giants like PayPal and Mastercard, potentially giving it access to millions of businesses and consumers. He suggested that, considering this level of institutional adoption, ONDO could position itself among the most important digital assets in the market in the near future, if it manages to capitalize on these strategic partnerships. However, the ONDO token has depreciated by more than 4.41% in the last 24 hours, which could be connected to the broader crypto downturn. The token’s trading volume has also gone down by over 54% within the same timeframe.