Ondo Finance partners with Mastercard to bring tokenized Treasuries to MTN

Mastercard has onboarded Ondo Finance as the first provider of tokenized real-world assets on its multi-token network, allowing businesses to access tokenized U.S. Treasury securities.

Ondo Finance’s short-term U.S. government treasuries fund will be available on the MTN, enabling businesses to earn daily yield through tokenized assets with continuous subscriptions and redemptions.

The integration removes the need for stablecoin onramps or settlement delays, offering an alternative to traditional cash management.

What is Mastercard’s multi-token network?

Mastercard’s MTN is designed to streamline financial transactions by connecting banks and businesses in a unified digital environment. The addition of tokenized U.S. Treasury securities introduces these assets to the network, linking private payment systems with public blockchains.

This development follows years of efforts by banks to leverage blockchain technology for efficiency while maintaining regulatory compliance.

The Ondo Finance (ONDO) integration allows businesses to access tokenized U.S. Treasury securities directly on a public blockchain, settle payments through traditional banking infrastructure without additional cryptocurrency requirements, and manage liquidity with increased flexibility.

The underlying assets of the fund include holdings in BlackRock’s U.S. dollar institutional digital liquidity fund and short-term U.S. Treasuries managed by firms such as Franklin Templeton and WisdomTree.

Mastercard’s multi-token network aims to establish a framework for digital financial transactions, including applications in cross-border settlements and liquidity management. By incorporating tokenized assets, the network expands its capabilities to support businesses seeking alternative financial solutions.