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

Asset manager Wellington Management has joined forces with Ondo Finance to enable real-time liquidity for its new tokenized U.S. Treasury fund.

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

This collaboration is part of a broader initiative to integrate traditional assets, like U.S. Treasury bonds, onto the 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 representing shares of Treasury bonds, a low-risk asset class often used by institutions for stability.

24/7 technology

Through Ondo’s technology, investors in this fund can now access intraday liquidity, enabling them to sell or redeem their tokens at any time during the day. This liquidity is particularly useful for investors using these assets as collateral in financial transactions.

The collaboration will use Ondo Finance’s 24/7 redemption technology so that investors can exit their positions anytime throughout the day — a feature valuable in global financial markets where assets may need to move across borders.

Wellington’s fund also aligns with standards set by tokenized assets, like the SGD Delta Fund, which received high credit ratings, adding credibility and security to tokenized investments.