Tokenized real-world assert (RWA) issuer Ondo Finance has joined the Mastercard network that connects financial institutions with businesses to improve cross-border payments.
Ondo’s Short-Term U.S. Government Treasuries Fund (OUSG) investment product will be available to businesses on Mastercard’s Multi-Token Network (MTN), giving them access to yield via tokenized assets, according to an emailed announcement on Wednesday.
The majority of OUSG’s assets are invested in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), the largest blockchain-based money market fund, which is backed by short-term U.S. government bonds.
Mastercard’s MTN incorporates API-enabled blockchain tools to allow banks to streamline domestic and cross-border transactions.
Traditional financial (TradFi) giants like Mastercard developing blockchain-based networks means that other financial institutions and corporates are able to access cryptocurrency and other digital assets without having to set up additional crypto infrastructure or accounts.