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- Mastercard’s Multi-Token Network (MTN) has integrated Ondo Finance as its first provider of tokenized real-world assets (RWAs).
- Businesses onboarded with Ondo can now access its Short-Term US Government Treasuries Fund (OUSG) via MTN, enabling seamless investment and yield generation.
- This marks one of the first live connections between a private payments network and a public blockchain infrastructure.
Mastercard is making a massive step towards the digital finance future with a new partnership with Ondo Finance. The partnership makes Ondo Mastercard’s first provider of tokenized real-world assets (RWAs) on its Multi-Token Network (MTN).
With this integration, MTN-using companies will have direct access to Ondo’s Short-Term US Government Treasuries Fund (OUSG), which will enable them to invest in tokenized treasuries with ease, independent of traditional banking infrastructure.
The partnership will also present companies with a new way of effectively managing cash reserves and liquidity. Institutional participants will be able to earn daily return on 24/7 subscription and redemptions on blockchain-based instruments. There is no waiting involved with traditional windows nor is stablecoin conversion necessary.
Most prominently, perhaps, is that that integration is a step towards closing the gap between private finance networks and public blockchain networks. Bankers and financial institutions have spent a couple of years designing private blockchain solutions, but this partnership is a tangible step towards mainstreaming DeFi elements into mainstream finance.
A New Approach to Onchain Liquidity
MTN is designed to facilitate transactions between companies and finance institutions in a secure digital platform. Mastercard makes that a possibility with its incorporation of OUSG into its network, which makes a direct mapping between private pay networks and publicly listed blockchain-based assets.
Firms on-boarded with Mastercard MTN on Ondo can have direct access to OUSG on a publicly available ledger, with secure, traceable transactions made available. The clearing is supported seamlessly through traditional banking infrastructure with no additional infrastructure requirements.
This arrangement allows more cash management flexibility with 24×7 redemptions as also with instant cash access.OUSG presents a variety of benefits as a means by which businesses can securely manage treasury holdings.
Mastercard and Ondo Finance Transform Treasury Management
It is more cost effective with lowered fees as well as minimal investment thresholds over traditional solutions with instant buying and selling functionality as well as daily distribution of yield.
Supported by institutionally-backed assets from BlackRock, Franklin Templeton, and WisdomTree, stability is provided by OUSG with the power of blockchain technology. The incorporation of MTN allows companies to avail these advantages with no common hindrances that are traditionally seen in tokenized finance.
With its addition of Ondo’s product, Mastercard makes MTN a central platform for tokenized instruments. The move is in line with a wider pattern in which traditional finance is turning towards blockchain as a means of improving liquidity, simplifying transactions, and improving digital finance functionality.
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