Ondo Finance Brings Tokenised Treasuries to Mastercard’s Blockchain Network
Ondo Finance has announced that it will be the first provider to bring real-world assets (RWAs) to Mastercard’s Multi-Token Network (MTN).
The partnership, revealed on Wednesday (26 February), will see Ondo’s short-term U.S. government treasury fund (OUSG) become the first tokenised real-world asset available on the Mastercard network. This integration will enable businesses to earn daily yield through tokenised assets with round-the-clock subscriptions and redemptions, eliminating the need for stablecoin on-ramps or settlement windows.
A Milestone in Blockchain-Powered Payments
Ian De Bode, Chief Strategy Officer at Ondo Finance, described the partnership as a landmark moment in the connection between private payment networks and tokenised assets on public blockchains.
“This connectivity will enable the banking ecosystem to move to 24/7 functionality on a global basis, powered by Ondo’s assets and services,” he said in a statement.
The MTN allows banks to integrate seamlessly with digital applications built on the network, managing the complexities of both domestic and cross-border commercial transactions. Key benefits include improved transparency, faster settlements, and reduced friction caused by time zone differences.
The inclusion of OUSG on the MTN marks one of the first real-world examples of connectivity between private payment networks and tokenised assets on public blockchains. Businesses using the MTN will have 24/7 access to OUSG before payments are processed through traditional banking rails, without needing to set up separate cryptocurrency infrastructure or accounts.
24/7 Cash Management and Instant Access
According to the announcement, this integration will make access to tokenised U.S. Treasuries seamless for businesses, allowing them to manage cash with complete flexibility.
“This makes access to tokenised treasuries via traditional cash balances instant and seamless, meaning complete, 24/7 cash management freedom,” the release stated.
This move follows Ondo’s recent efforts to expand its reach in the tokenised asset space. Last month, the company announced that OUSG would be integrated into the XRP Ledger, allowing institutional investors to access U.S. Treasuries via blockchain technology.
Unlocking Blockchain’s True Potential
Tokenised RWAs have been increasingly recognised for their potential to improve liquidity, accessibility, and efficiency while enhancing security and transparency. However, challenges remain in creating a widely interoperable infrastructure that connects both private and public payment systems.
Mastercard’s Chief Digital Officer, Jorn Lambert, highlighted these challenges in an interview last year, emphasising the need for regulated financial institutions to drive mainstream adoption of blockchain-based financial services.
“The true intrinsic value of blockchain—around programmability of transactions, immutability of transactions, and the ability to enable delivery versus payment and always-on types of payments—has yet to be unlocked,” Lambert explained.
He further noted that until financial institutions can develop regulated applications on the blockchain, the full benefits of tokenisation will remain untapped.
With this latest partnership, Ondo Finance and Mastercard are taking a significant step towards integrating blockchain technology into traditional finance, paving the way for a more seamless and efficient digital payments ecosystem.
