The investment broadens Ondo Finance’s onchain Treasury reserves and comes amid a renewed push into crypto-backed lending across fintechs, lenders and exchanges.
News
Ondo Finance has purchased $25 million of YLDS, the yield-bearing stablecoin issued by Figure Technology Solutions, to diversify the assets backing its tokenized US Treasurys fund.
The company Monday that YLDS will be added to a reserves portfolio that already includes tokenized Treasury products from major asset managers, including funds issued by BlackRock, Fidelity, Franklin Templeton, and WisdomTree.
Designed for institutional investors, the Ondo Short-Term US Government Bond Fund (OUSG) offers onchain exposure to Treasurys with 24/7 redemptions and an estimated annual return of 3.68%. The tokenized fund has about $777 in total value locked (TVL) as of this writing.
Figure runs lending and capital-markets infrastructure on the Provenance blockchain, and has originated more than $19 billion in loans across home-equity lines, mortgage products, and crypto-backed credit. The deal follows Figure’s completion of its . According to DefiLlama , its YLDS stablecoin has a market capitalization of around $100 million.
Ondo Finance is a US-based platform founded in 2021 that tokenizes traditional financial assets. In October, the company expanded its , adding more than 100 tokenized Wall Street stocks and exchange-traded funds onchain.
On Wednesday, the platform received regulatory approval from the Liechtenstein Financial Market Authority (FMA) to offer .
Figure’s stock price was up nearly 4% in early trading on Monday, according to Yahoo Finance data.
Related:
Crypto-backed lending is gaining traction globally, and the trend has accelerated in 2025 as more lenders revive and expand crypto-collateralized loan products.
In July, Block Earner introduced , offering borrowers cash worth up to half a property’s value, with the crypto collateral safeguarded by Fireblocks.
On Tuesday, stablecoin issuer , a platform that provides Bitcoin-backed consumer loans. In the third quarter, Ledn reported originating .
Centralized exchanges are also expanding into this space and broadening their offerings beyond Bitcoin (). On Thursday, Coinbase rolled out Ether-backed loans for US customers, letting users borrow up to their Ether () holdings.
Coinbase’s onchain lending markets have handled about $1.28 billion in loan originations since launching earlier this year, according to Dune .
Magazine:
