TL;DR
- Wellington Management partners with Ondo Finance to launch the Delta Wellington Ultra Short Treasury On-Chain Fund, bringing institutional-grade liquidity to tokenized U.S. Treasury assets.
- Ondo Finance’s 24/7 redemption technology will enable investors to manage or exit their positions at any time, enhancing the fund’s utility in the Web3 ecosystem.
- The fund, rated Aa by Moody’s, marks a significant milestone in the mainstream acceptance of tokenized assets, with plans to expand to other networks like Arbitrum, Avalanche, and Solana.
Wellington Management, a leading asset manager with over $1 trillion in assets, has announced a strategic partnership with Ondo Finance to launch a tokenized U.S. Treasury fund. This collaboration aims to bring institutional-grade liquidity to the newly unveiled Delta Wellington Ultra Short Treasury On-Chain Fund.
1/ Wellington Management Partners with Ondo Finance to Provide Intraday Redemptions for Tokenized US Treasury Fund
Wellington Management (@Wellington_Mgmt) one of the world’s largest independent asset managers with over $1 trillion in assets, has partnered with Ondo Finance to… pic.twitter.com/dy1tefMxxM
— Ondo Finance (@OndoFinance) October 30, 2024
The fund is part of a groundbreaking initiative led by Libeara, a tokenization platform backed by Standard Chartered’s SC Ventures, to enable traditional assets on the blockchain.
Enhancing Liquidity and Accessibility
The partnership will leverage Ondo Finance’s technology to provide intraday redemptions, a critical component for the fund’s use as collateral and seamless cross-border settlement.
Ondo Finance’s 24/7 redemption technology will empower investors to manage or exit their positions at any time, further enhancing the fund’s utility in the Web3 ecosystem.
“By enabling 24/7 liquidity, Ondo Finance is ensuring that tokenized assets can be most effectively used as collateral and for cross-border settlement, including in the digital assets ecosystem,” said Nathan Allman, CEO of Ondo Finance.
Mainstream Acceptance of Tokenized Assets
The Delta Wellington Ultra Short Treasury On-Chain Fund, rated Aa by Moody’s, marks a significant milestone in the mainstream acceptance of tokenized assets. The Aa rating not only validates the security and stability of the fund’s structure but also demonstrates that tokenization does not inherently alter the risk profile of traditional financial assets.
This rating provides the credibility needed for institutional investors and paves the way for the broader adoption of tokenized assets. The fund is currently live on the Ethereum blockchain, with plans to expand to other networks such as Arbitrum, Avalanche, and Solana.
This expansion will further enhance the fund’s accessibility and utility across different blockchain ecosystems. Ondo Finance is also actively working with other leading asset managers on real-time redemption capabilities, facilitating the transformation of blockchain-powered asset management.
The partnership between Wellington Management and Ondo Finance represents a significant step forward in the integration of traditional finance and blockchain technology. By providing institutional-grade liquidity and enhancing the utility of tokenized assets, this collaboration sets a new standard for financial services in the cryptocurrency market.
