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

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?