Ondo Finance collaborates with Mastercard for tokenized Treasuries deployment at MTN

Mastercard has brought Ondo Finance on board as the inaugural provider of tokenized real-world assets on its multi-token network, enabling enterprises to access tokenized U.S. Treasury securities.

Ondo Finance's fund of short-term U.S. government treasuries will be featured on the MTN, permitting businesses to earn daily yield through tokenized assets with ongoing subscriptions and redemptions.

This integration eliminates the need for stablecoin onramps or settlement delays, providing an alternative to conventional cash management practices.

What is Mastercard's multi-token network?

Mastercard's MTN is intended to simplify financial transactions by linking banks and businesses in a unified digital ecosystem. The inclusion of tokenized U.S. Treasury securities introduces these assets to the network, bridging private payment systems with public blockchains.

This advancement comes after years of banks endeavoring to harness blockchain technology for efficiency while adhering to regulatory compliance.

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The integration of Ondo Finance (ONDO) enables businesses to access tokenized U.S. Treasury securities directly on a public blockchain, settle payments through traditional banking infrastructure without extra cryptocurrency requirements, and manage liquidity with enhanced flexibility.

The fund's underlying assets encompass holdings in BlackRock's U.S. dollar institutional digital liquidity fund and short-term U.S. Treasuries administered by firms such as Franklin Templeton and WisdomTree.

Mastercard's multi-token network aims to create a structure for digital financial transactions, including applications in cross-border settlements and liquidity management. By incorporating tokenized assets, the network expands its capabilities to accommodate businesses seeking alternative financial solutions.

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