HomeNewsOndo Finance Partners with Mastercard to Bring Tokenized RWAs to Multi-Token Network

Ondo Finance Partners with Mastercard to Bring Tokenized RWAs to Multi-Token Network

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  • In a significant move, Ondo Finance has partnered with Mastercard to integrate tokenized US Treasuries into Mastercard’s Multi-Token Network (MTN).
  • The tokenization of Real-World Assets (RWAs) is set for massive growth, with analysts predicting a multi-trillion-dollar market, as institutional adoption surpasses $15 billion.

The tokenization of the Real-World Assets market is projected to undergo splendid growth in the coming years. Notably, analysts talk about trillions of dollars in the coming years. In fact, there is a consensus that RWA tokenization is poised to be a major driver of growth in the blockchain space.

This development is noteworthy because Ondo Finance, a heavy hitter in the technology industry, has joined forces with another financial behemoth company, Mastercard, to venture into the tokenization of real-world assets.

Ondo Finance officially announced its collaboration with Mastercard, a firm that operates a vast global payment network, bringing tokenized Real-World Assets (RWAs) to Mastercard’s Multi-Token Network (MNT). This new development will reach over 210 countries in which Mastercard has solidified its foot step.

Notably, by integrating Ondo’s OUSG into Mastercard’s MTN, businesses gain seamless access to the advantages of tokenized US Treasuries, aligning with the RWA sector’s growing institutional adoption, now exceeding $15 billion (excluding stablecoins), according to K33 Research.

In a move to integrate tokenized RWAs, Ondo Finance and Mastercard announced a partnership Wednesday, with Ondo joining Mastercard’s Multi-Token Network as its first provider.

“The MTN enables banks to offer digital financial services to integrated businesses, and Ondo’s Short Term US Treasuries Fund (OUSG) will be the first tokenized RWA solution providing businesses onchain with access to daily yield and flexible cash management,” says Ondo on its official social media platform X.

Additionally, “With the addition of OUSG, MTN is breaking new ground by connecting a private payments network with tokenized assets on public blockchains for the very first time.” says Ondo in its blog post.

By seamlessly integrating traditional finance with blockchain technology, it provides businesses with an easy pathway to incorporate tokenized treasuries.

Having that the tokenization of RWAs will become a major hit in the blockchain sector,  K33 has been tracking its progress. As per a report released on Wednesday by K433 brought to light that the institutional adaptation of the RWAs sector is growing as pioneers in the cross section of crypto and TradiFi seek to improve efficiency accessibility and liquidity through RWA innovation.

As regulatory frameworks clarify asset tokenization, and BlackRock leads the way, RWA growth is accelerating, with the market now over $15 billion (excluding stablecoins) and US Treasuries like Ondo valued at $4 billion.

It is also worth mentioning that major financial institutions like JPMorgan and others are actively exploring and implementing RWA tokenization. This institutional involvement is expected to accelerate adoption and bring greater legitimacy to the sector.

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Dennis Grace
Dennis Grace
Peter Macharia is a crypto enthusiast and seasoned writer who specializes in blockchain technology, digital assets, and decentralized finance. He has a talent for simplifying complex concepts and turning them into engaging informative content. With a deep understanding of the industry, Peter delivers clear and precise analysis that resonates with both beginners and experienced crypto enthusiasts.
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