OUSG overview
OUSG tokens are linked to various categories of shares in the Ondo U.S. Short-Term Government Bond Fund (OUSG Fund), which is solely invested in short-term U.S. government bonds.
Introducing round-the-clock, year-round subscriptions and redemptions; transitioning OUSG assets to BlackRock's BUIDL fund
The redemption process for Ondo's OUSG traditionally required a few business days due to the limitations imposed by standard T+2 securities settlement times, which delayed the conversion of underlying securities into USD. The upcoming transition to T+1 settlement for many securities signifies progress, yet the significant appeal of blockchain technology is its capacity for quicker settlements, a functionality highly anticipated by Ondo's clientele.
In response, Ondo has announced plans to enable instant investment and redemption for OUSG, operational 24/7/365. Furthermore, Ondo is introducing a new variant of OUSG, named rOUSG, designed to maintain a constant $1.00 per share price for minting and redeeming, with yields distributed daily in the form of additional rOUSG tokens through token rebasement. Ondo will also provide a straightforward mechanism for users to convert between OUSG and rOUSG instantaneously, available through their website and on the blockchain.
This strategic shift reflects Ondo's commitment to addressing client feedback by streamlining its offerings. The simplified global cash equivalent portfolio now includes two core products:
- OUSG: Targeted at global institutional and high net worth individuals, including those in the US, this product serves as a cash management and settlement tool. It operates within permissioned secondary markets and is structured as an investment fund.
- USDY: Designed as a yield-generating alternative to traditional stablecoins, USDY is aimed at non-US individuals and institutional investors for use in savings, payments and on-chain financial platforms. It is structured as a secured debt offering.
This development aligns with the recent announcement of Ondo's intention to launch Ondo Global Markets. This initiative will facilitate the large-scale tokenization of various securities, offering native on-chain access to traditional off-chain liquidity.
In conjunction with these changes, a significant portion of OUSG’s assets will be transferred into the newly unveiled BlackRock USD Institutional Digital Liquidity Fund. Ondo welcomes BlackRock's entry into securities tokenization through BUIDL, particularly noting its extensive collaboration with ecosystem stakeholders. This move not only reaffirms the vision for a tokenized US Treasury fund but also strengthens the belief that the tokenization of traditional securities on public blockchains marks a crucial advancement in the financial market's evolution.
As outlined in Ondo's vision and roadmap earlier this year, the firm emphasizes the importance of heeding client input and blending the strengths of traditional finance with blockchain's capabilities. The evolution of its cash management offerings is a testament to Ondo's dedication to these principles, underscoring its enthusiasm in unveiling these developments to both existing and prospective clients.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
OUSG overview
OUSG tokens are linked to various categories of shares in the Ondo U.S. Short-Term Government Bond Fund (OUSG Fund), which is solely invested in short-term U.S. government bonds.
Introducing round-the-clock, year-round subscriptions and redemptions; transitioning OUSG assets to BlackRock's BUIDL fund
The redemption process for Ondo's OUSG traditionally required a few business days due to the limitations imposed by standard T+2 securities settlement times, which delayed the conversion of underlying securities into USD. The upcoming transition to T+1 settlement for many securities signifies progress, yet the significant appeal of blockchain technology is its capacity for quicker settlements, a functionality highly anticipated by Ondo's clientele.
In response, Ondo has announced plans to enable instant investment and redemption for OUSG, operational 24/7/365. Furthermore, Ondo is introducing a new variant of OUSG, named rOUSG, designed to maintain a constant $1.00 per share price for minting and redeeming, with yields distributed daily in the form of additional rOUSG tokens through token rebasement. Ondo will also provide a straightforward mechanism for users to convert between OUSG and rOUSG instantaneously, available through their website and on the blockchain.
This strategic shift reflects Ondo's commitment to addressing client feedback by streamlining its offerings. The simplified global cash equivalent portfolio now includes two core products:
- OUSG: Targeted at global institutional and high net worth individuals, including those in the US, this product serves as a cash management and settlement tool. It operates within permissioned secondary markets and is structured as an investment fund.
- USDY: Designed as a yield-generating alternative to traditional stablecoins, USDY is aimed at non-US individuals and institutional investors for use in savings, payments and on-chain financial platforms. It is structured as a secured debt offering.
This development aligns with the recent announcement of Ondo's intention to launch Ondo Global Markets. This initiative will facilitate the large-scale tokenization of various securities, offering native on-chain access to traditional off-chain liquidity.
In conjunction with these changes, a significant portion of OUSG’s assets will be transferred into the newly unveiled BlackRock USD Institutional Digital Liquidity Fund. Ondo welcomes BlackRock's entry into securities tokenization through BUIDL, particularly noting its extensive collaboration with ecosystem stakeholders. This move not only reaffirms the vision for a tokenized US Treasury fund but also strengthens the belief that the tokenization of traditional securities on public blockchains marks a crucial advancement in the financial market's evolution.
As outlined in Ondo's vision and roadmap earlier this year, the firm emphasizes the importance of heeding client input and blending the strengths of traditional finance with blockchain's capabilities. The evolution of its cash management offerings is a testament to Ondo's dedication to these principles, underscoring its enthusiasm in unveiling these developments to both existing and prospective clients.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
OUSG overview
OUSG tokens are linked to various categories of shares in the Ondo U.S. Short-Term Government Bond Fund (OUSG Fund), which is solely invested in short-term U.S. government bonds.
Introducing round-the-clock, year-round subscriptions and redemptions; transitioning OUSG assets to BlackRock's BUIDL fund
The redemption process for Ondo's OUSG traditionally required a few business days due to the limitations imposed by standard T+2 securities settlement times, which delayed the conversion of underlying securities into USD. The upcoming transition to T+1 settlement for many securities signifies progress, yet the significant appeal of blockchain technology is its capacity for quicker settlements, a functionality highly anticipated by Ondo's clientele.
In response, Ondo has announced plans to enable instant investment and redemption for OUSG, operational 24/7/365. Furthermore, Ondo is introducing a new variant of OUSG, named rOUSG, designed to maintain a constant $1.00 per share price for minting and redeeming, with yields distributed daily in the form of additional rOUSG tokens through token rebasement. Ondo will also provide a straightforward mechanism for users to convert between OUSG and rOUSG instantaneously, available through their website and on the blockchain.
This strategic shift reflects Ondo's commitment to addressing client feedback by streamlining its offerings. The simplified global cash equivalent portfolio now includes two core products:
- OUSG: Targeted at global institutional and high net worth individuals, including those in the US, this product serves as a cash management and settlement tool. It operates within permissioned secondary markets and is structured as an investment fund.
- USDY: Designed as a yield-generating alternative to traditional stablecoins, USDY is aimed at non-US individuals and institutional investors for use in savings, payments and on-chain financial platforms. It is structured as a secured debt offering.
This development aligns with the recent announcement of Ondo's intention to launch Ondo Global Markets. This initiative will facilitate the large-scale tokenization of various securities, offering native on-chain access to traditional off-chain liquidity.
In conjunction with these changes, a significant portion of OUSG’s assets will be transferred into the newly unveiled BlackRock USD Institutional Digital Liquidity Fund. Ondo welcomes BlackRock's entry into securities tokenization through BUIDL, particularly noting its extensive collaboration with ecosystem stakeholders. This move not only reaffirms the vision for a tokenized US Treasury fund but also strengthens the belief that the tokenization of traditional securities on public blockchains marks a crucial advancement in the financial market's evolution.
As outlined in Ondo's vision and roadmap earlier this year, the firm emphasizes the importance of heeding client input and blending the strengths of traditional finance with blockchain's capabilities. The evolution of its cash management offerings is a testament to Ondo's dedication to these principles, underscoring its enthusiasm in unveiling these developments to both existing and prospective clients.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
