Wellington taps Ondo Finance to help with tokenized U.S. treasury fund

Asset manager Wellington Management has joined forces with Ondo Finance to provide real-time liquidity for its newly tokenized US Treasury fund.

Wellington Management, which manages over $1 trillion in assets, has partnered with blockchain-based finance company Ondo Finance (ONDO) to increase liquidity in its newly launched tokenized US Treasury Fund.

This collaboration is part of a broader initiative to integrate traditional assets such as U.S. Treasury bills into blockchain for easier access and management.

Tokenized assets are digital representations of real-world financial assets on a blockchain. In this case, Wellington’s tokenized U.S. Treasury Fund allows investors to purchase digital tokens that represent shares of Treasuries, a low-risk asset class often used by institutions for stability.

24/7 technology

Thanks to Ondo’s technology, investors in this fund now have access to intraday liquidity, allowing them to sell or redeem their tokens at any time during the day. This liquidity is especially beneficial for investors who use these assets as collateral in financial transactions.

The collaboration will use Ondo Finance’s 24/7 redemption technology so investors can exit their positions at any time throughout the day; This is a valuable feature in global financial markets where assets may need to be moved across borders.

Wellington’s fund also complies with standards set by tokenized assets, such as the highly credit-rated SGD Delta Fund, which adds credibility and security to tokenized investments.