Ondo Finance has announced a pioneering move by becoming the first provider to bring real-world assets (RWAs) to Mastercard’s Multi-Token Network (MTN).
In a statement on Wednesday (26 February), Ondo revealed that its short-term U.S. government treasury fund (OUSG) will be the first tokenized RWA available on Mastercard’s network. The offering will allow businesses to earn daily yields via tokenized assets with round-the-clock subscriptions and redemptions, eliminating the need for stablecoin onramps or settlement windows.
A Milestone for Digital and Traditional Finance Integration
Ian De Bode, Chief Strategy Officer at Ondo Finance, described the partnership as a landmark moment in financial technology.
“This partnership represents a landmark moment of connecting private payment network rails to tokenized assets on public blockchain networks,” he said. “This connectivity will enable the banking ecosystem to move to 24/7 functionality on a global basis, powered by Ondo’s assets and services.”
The integration of OUSG with MTN marks one of the first real-time connections between a private payments network and tokenized assets on public blockchains. Businesses operating on Mastercard’s MTN will have continuous access to OUSG before payments are settled through traditional banking channels. Importantly, they will not need to establish additional cryptocurrency infrastructure or accounts, simplifying the process.
Enhancing Financial Efficiency and Accessibility
Mastercard’s Multi-Token Network is designed to support banks in seamlessly connecting with blockchain-based applications while managing the complexities of both domestic and cross-border transactions. The system enhances transparency, speeds up settlements, and reduces time zone-related inefficiencies in global trade.
Ondo Finance highlighted that its tokenized treasury fund offers an innovative solution for businesses seeking to optimise cash management.
“This makes access to tokenized treasuries via traditional cash balances instant and seamless, meaning complete, 24/7 cash management freedom,” the company said in its announcement.
Expanding Tokenised Treasury Access
Ondo’s latest move builds on its recent expansion into the XRP Ledger. Last month, the company introduced tokenized U.S. Treasuries to the XRP ecosystem, giving institutional investors access to OUSG.
The broader potential of tokenized RWAs has long been recognised. Industry experts highlight their ability to make assets more liquid, accessible, and efficient while improving transparency, security, and global reach. However, widespread adoption still faces hurdles, including the lack of a universally interoperable infrastructure that bridges private and public payment networks.
The Future of Blockchain in Finance
Jorn Lambert, Chief Digital Officer at Mastercard, has previously emphasised the untapped potential of blockchain technology in financial services.
“The true intrinsic value of blockchain, which is around programmability of transactions, immutability of transactions, and the ability to do delivery versus payment and always-on types of payments, has yet to be unlocked,” he said in an interview last year.
Lambert also stressed the importance of regulated financial institutions in scaling blockchain-based financial solutions.
“Until there exists the ability to actually develop financially regulated applications on the blockchain, the benefits will never go mainstream,” he said.
With Mastercard’s Multi-Token Network and Ondo Finance’s pioneering efforts, the industry is moving one step closer to bridging the gap between traditional and digital financial ecosystems, paving the way for a more efficient and accessible future in global finance.
