Ondo Finance Joins Mastercard Network to Enhance Cross-Border Payments
In a significant move for the world of tokenized real-world assets (RWAs), Ondo Finance has announced its integration into the Mastercard network. This partnership aims to connect financial institutions with businesses, effectively enhancing the efficiency of cross-border payment systems.
As part of this collaboration, Ondo’s Short-Term U.S. Government Treasuries Fund (OUSG) investment product will now be accessible to businesses through Mastercard’s innovative Multi-Token Network (MTN). This integration provides companies with the opportunity to earn yield via tokenized assets, marking a notable advancement in the realm of digital finance, as highlighted in an announcement made via email on Wednesday.
The OUSG fund primarily invests in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), recognized as the largest blockchain-based money market fund. This fund is strategically backed by short-term U.S. government bonds, which adds a layer of stability and security to the investment.
Mastercard’s MTN is designed with advanced, API-enabled blockchain tools that facilitate the seamless execution of both domestic and international transactions. This technological innovation underscores a broader trend in which traditional financial giants, like Mastercard, are developing blockchain-based infrastructures. Such developments allow other financial institutions and corporate entities to engage with cryptocurrency and various digital assets without the need to establish additional crypto-specific infrastructure or accounts.
In summary, the partnership between Ondo Finance and Mastercard signifies a progressive step towards integrating traditional finance with the burgeoning world of digital assets, paving the way for enhanced liquidity and accessibility in cross-border payments.
