Ondo Finance Partners with Mastercard to Integrate Real-World Asset Tokenization into Multi-Token Network

The project on tokenizing real-world assets by Ondo Finance has partnered with Mastercard’s Multi-Token Network (MTN) as part of a new collaboration.

Participants in the network will gain access to tokenized assets through the company’s investment product that is based on the Ondo’s Short-Term US Government Treasuries Fund (OUSG).

According to the press release, a significant portion of the OUSG assets is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), short-term U.S. Treasury bonds, and GSE funds managed by Franklin Templeton, WisdomTree, Wellington Management, and Fundbridge Capital.

The MTN blockchain trials began in 2023 with tokenized bank deposits. Mastercard aims to build a scalable infrastructure for cross-border payments and tokenized liquidity management.

“What makes this partnership noteworthy is its ability to facilitate settlements between various banks around the clock, using traditional financial platforms and catering to multiple institutions,” noted Ondo Finance’s Chief Strategy Officer Ian De Bode in an interview with Mastercard Newsroom.

He stated that investment products such as tokenized stocks and ETFs will emerge on public blockchains «far sooner than people expect.»

Additionally, Jesse Knutson, the Chief Operating Officer at Bitfinex Securities, believes that traditional financial institutions will be the main drivers for the growth of the asset tokenization market.