Ondo Finance Diversifies Treasury Fund with $25M YLDS Investment

Ondo Finance Adds YLDS to Treasury Fund Reserves

Ondo Finance has committed $25 million to YLDS, a yield-bearing stablecoin issued by Figure Technology Solutions. This strategic move aims to diversify the asset base supporting their tokenized US Treasury fund. The company announced on Monday that YLDS would be incorporated into a reserves portfolio already encompassing tokenized Treasury products from prominent asset managers, including BlackRock, Fidelity, Franklin Templeton, and WisdomTree. Designed for institutional investors, the Ondo Short-Term US Government Bond Fund (OUSG) provides on-chain access to Treasurys with 24/7 redemption capabilities and an estimated annual return of 3.68%. As of this writing, the tokenized fund boasts approximately $777 million in total value locked (TVL). Figure operates its lending and capital markets infrastructure on the Provenance blockchain and has originated over $19 billion in loans across home equity lines, mortgage products, and crypto-backed credit. This transaction follows Figure’s successful Nasdaq IPO earlier in the year. According to DefiLlama data, YLDS possesses a market capitalization of roughly $100 million. Ondo Finance, established in 2021 and based in the US, specializes in tokenizing traditional financial assets. In October, the company expanded its tokenized asset offerings to the BNB Chain, introducing over 100 tokenized Wall Street stocks and exchange-traded funds on-chain. This past Wednesday, the platform secured regulatory approval from the Liechtenstein Financial Market Authority (FMA) to offer tokenized stocks within Europe. According to Yahoo Finance data, Figure’s stock price saw an increase of nearly 4% in early trading on Monday.

Crypto-Backed Lending Gaining Traction

Crypto-backed lending is experiencing increased adoption globally, with this trend accelerating in 2025 as more lenders revive and expand their crypto-collateralized loan offerings. In July, Block Earner launched Bitcoin-backed home loans in Australia, offering borrowers cash equivalent to up to half of a property’s value, with crypto collateral secured by Fireblocks. On Tuesday, stablecoin issuer Tether announced an investment in Ledn, a platform providing Bitcoin-backed consumer loans. In the third quarter, Ledn reported originating over $390 million in BTC-backed loans. Centralized exchanges are also venturing into this sector, extending their services beyond Bitcoin (BTC). On Thursday, Coinbase introduced Ether-backed loans for US customers, allowing users to borrow up to $1 million in USDC against their Ether (ETH) holdings. Dune data indicates that Coinbase's on-chain lending markets have facilitated approximately $1.28 billion in loan originations since their launch earlier this year.