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- Mastercard adds Ondo Finance to offer tokenized U.S. Treasury securities on its Multi-Token Network for businesses.
- Businesses can access tokenized treasuries on a public blockchain and settle payments through traditional banking systems.
- Mastercard’s Multi-Token Network helps businesses manage liquidity with 24/7 access to tokenized financial solutions.
Mastercard has added Ondo Finance as the first provider of tokenized real-world assets on its Multi-Token Network (MTN). This move enables businesses to access digital versions of U.S. Treasury securities without stablecoin onramps or settlement delays.
Tokenized Treasuries on MTN
Ondo Finance’s short-term U.S. government treasuries fund will now be available on MTN. Businesses can earn daily yields on tokenized assets with continuous subscription and redemption options. This integration eliminates the need for stablecoin conversions, streamlining cash management.
The MTN aims to enhance digital financial transactions by connecting banks and businesses in a unified system. By adding tokenized U.S. Treasury securities, the network bridges private payment infrastructures with public blockchains, increasing accessibility.
Advancing Blockchain Adoption in Banking
The financial sector continues to evaluate blockchain technology as a means to enhance operational efficiency within maintained regulatory requirements. This advancement brings blockchain technology closer to traditional banking infrastructure. Businesses can access tokenized treasuries directly on a public blockchain while settling payments through traditional banking channels.
The underlying assets of Ondo’s fund include holdings in BlackRock’s U.S. dollar institutional digital liquidity fund. The investment fund contains short-term U.S. Treasuries that are managed by Franklin Templeton and WisdomTree. These assets deliver market stability and liquidity which attracts businesses seeking non-traditional financial solutions.
Connecting Traditional and Digital Finance
Ondo Finance’s integration with Mastercard allows banks and businesses to operate with increased flexibility. By linking traditional payment rails to tokenized assets, the network facilitates real-time global financial operations.
MTN supports institutions in cross-border settlements and liquidity management. The addition of tokenized treasuries enables businesses to manage cash flow more efficiently. It also opens new possibilities for treasury management and financial transactions worldwide.
Expanding the Multi-Token Network
Mastercard continues to build on its payment infrastructure by integrating tokenized assets. The MTN provides businesses with 24/7 access to financial solutions. This collaboration with Ondo Finance enhances the usability of blockchain-based assets in institutional finance.