Ondo turns to Figure’s stablecoin with $25M investment to back tokenized fund

Nate Kostar 2 minutes ago Ondo turns to Figure’s stablecoin with $25M investment to back tokenized fund The purchase broadens Ondo Finance’s onchain Treasury reserves and comes amid a renewed push into crypto-backed lending across fintechs, lenders and exchanges. Listen 0:00 15 News COINTELEGRAPH IN YOUR SOCIAL FEED Ondo Finance has purchased $25 million of YLDS, the yield-bearing stablecoin issued by Figure Technology Solutions, to diversify the assets backing its tokenized US Treasurys fund. The company said Monday that YLDS will be added to a reserves portfolio that already includes tokenized Treasury products from major asset managers, including funds issued by BlackRock, Fidelity, Franklin Templeton, and WisdomTree. Designed for institutional investors, the Ondo Short-Term US Government Bond Fund (OUSG) offers onchain exposure to Treasurys with 24/7 redemptions and an estimated annual return of 3.68%. The tokenized fund has about $777 million in total value locked (TVL) as of this writing. Figure runs lending and capital-markets infrastructure on the Provenance blockchain, and has originated more than $19 billion in loans across home-equity lines, mortgage products, and crypto-backed credit. The deal follows Figure’s completion of its Nasdaq IPO earlier this year . According to DefiLlama data , its YLDS stablecoin has a market capitalization of around $100 million. Source: RWA.xyz Ondo Finance is a US-based platform founded in 2021 that tokenizes traditional financial assets. In October, the company expanded its tokenized asset lineup to BNB Chain , adding more than 100 tokenized Wall Street stocks and exchange-traded funds onchain. On Wednesday, the platform received regulatory approval from the Liechtenstein Financial Market Authority (FMA) to offer tokenized stocks in Europe . Figure’s stock price was up nearly 4% in early trading on Monday, according to Yahoo Finance data. Source: Yahoo Finance Related: Ondo Finance to SEC: Hold off on Nasdaq’s tokenized securities plan Crypto-backed lending gains momentum Crypto-backed lending is gaining traction globally, and the trend has accelerated in 2025 as more lenders revive and expand crypto-collateralized loan products. In July, Block Earner introduced Bitcoin-backed home loans in Australia , offering borrowers cash worth up to half a property’s value, with the crypto collateral safeguarded by Fireblocks. On Tuesday, stablecoin issuer Tether announced an investment in Ledn , a platform that provides Bitcoin-backed consumer loans. In the third quarter, Ledn reported originating over $390 million in BTC-backed loans . Centralized exchanges are also expanding into this space and broadening their offerings beyond Bitcoin ( BTC ). On Thursday, Coinbase rolled out Ether-backed loans for US customers, letting users borrow up to $1 million in USDC against their Ether ( ETH ) holdings. Coinbase’s onchain lending markets have handled about $1.28 billion in loan originations since launching earlier this year, according to Dune data . Source: Dune.com Magazine: Cliff bought 2 homes with Bitcoin mortgages: Clever… or insane? # Business # Lending # Stablecoin # RWA # RWA Tokenization Add reaction