Holders of stablecoins can now invest in bonds and US Treasury securities thanks to a tokenized fund developed by Ondo Finance, making traditional capital markets more accessible to investors who collectively hold more than $100 billion of non-yield-bearing stablecoins.Investors will obtain tokenized fund interests that may be transferred using permitted smart contracts and other on-chain means. Ondo CEO Nathan Allman, founder of Ondo Finance, announced the news via Twitter: US Government Bond Fund (OUSG), Short Term Investment Grade Bond Fund OSTB, and. Ondo Finance will launch three different share classes: High Yield Corporate Bond Fund, (OHYG), and Short-Term Investment Grade Bond Fund (OSTB). At launch, there are three share classes:OUSG will only invest in short-term US treasuries via the Blackrock US Treasuries Exchange Fund (SHV).
OSTB will invest in corporate bonds of investment-grade quality, initially via the PIMCO Enhanced Saturity Active ETF MINT
OHYG will invest in high yield corporate bonds via the Blackrock iBoxx $ Higher Yield Corporate Bond ETF (HYG).
Ondo Capital Management will be the investment adviser for these ETFs. Ondo Finance Inc. will charge a management fee of 0.15 percent annually. Coinbase Custody will hold any stablecoins the fund has. Coinbase Prime will convert stablecoins to fiat. Richey May will act as the fund’s auditor and tax advisor, while NAV Consulting will administer the fund and keep track of capital accounts for investors.Stablecoins (or fiat) can be used as a form of payment for Ondo I LP investors, who will receive tokens signifying their ownership in the fund. These tokens can be transferred between themselves to change who owns which funds. Smart contracts can also be used by investors to simplify their financial arrangements.Transfer limitations built into the tokens themselves will prevent them from falling into the hands of anyone ineligible to invest in the fund. The fund must approve smart contracts before they can be used. This is to ensure that they are not being used to bypass transfer limits. Ondo Finance Inc. oversees the tokenization.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: Coinbase CustodyCoinbase PrimeNathan AllmanOHYGOndo Capital ManagementOndo FinanceOSTBOUSGus treasury