Ondo Turns to Figure’s Stablecoin with $25M Investment to Back Tokenized Fund

Why It Matters

The investment strengthens Ondo’s reserve diversification, enhancing confidence in its tokenized Treasury fund and signaling growing institutional adoption of stablecoins as collateral in on‑chain finance.

Summary

Ondo Finance has allocated $25 million to purchase YLDS, the yield‑bearing stablecoin issued by Figure Technology Solutions, to diversify the reserve backing its tokenized short‑term US government bond fund (OUSG). The fund, which offers on‑chain exposure to Treasurys with 24/7 redemptions and an estimated 3.68% annual return, now holds about $777 million in total value locked. YLDS, with a market cap of roughly $100 million, joins other tokenized Treasury products from BlackRock, Fidelity, Franklin Templeton and WisdomTree in Ondo’s reserves. Figure, fresh from its Nasdaq IPO, runs lending infrastructure on the Provenance blockchain and has originated over $19 billion in loans across various credit products.