Ondo introduces 24/7 conversions between PayPal USD and OUSG

Ondo Finance has launched instant conversions between tokenized short-term US treasury funds and stablecoin PayPal USD.

According to the announcement, investors will soon be able to enter and exit Ondo Short-Term US Government Treasuries, the main product of Ondo (ONDO). Investors will be able to access it via PayPal USD (PYUSD).

Ondo’s OUSG is a tokenized US treasury fund whose portfolio is largely held in the BlackRock USD Institutional Digital Liquidity Fund.

The integration comes a day after PayPal announced that users can now move PYUSD between Ethereum and Solana via LayerZero.

With the launch of the feature, PYUSD holders will have the opportunity to invest in or exit OUSG positions. This service will be available 24/7 and aims to improve the fund’s redemption liquidity as well as the stablecoin’s utility in the real-world asset market.

“Allowing conversions between OUSG and PYUSD enhances our offerings, expanding our customers’ options for reliable and high-quality payment solutions that allow them to keep more of their assets on-chain. “We are excited to be at the nexus of convergence between traditional finance and DeFi,” said Nathan Allman, CEO of Ondo Finance.

Ondo’s introduction of instant conversions between PYUSD and OUSG comes as the tokenized real-world assets space signals a period of accelerated adoption. Interest in products like OUSG and BUIDL is growing as skilled investors seek new opportunities with crypto and RWAs.

Investors are looking at these products because they offer tokenized cash equivalents and offer lower risk but higher returns than money market funds and U.S. treasury bonds.

According to RWA.xyz, the global tokenized US treasury bond market has grown from just over $100 million at the beginning of 2023 to over $2.3 billion.

Meanwhile, the total RWA on-chain market currently stands at over $13.1 billion, and growth comes as issuers like BlackRock and Franklin Templeton expand their core products across multiple blockchain networks.