Ondo Finance launches tokenized US Treasuries, bonds for stablecoin holders
The firm offered three products: the U.S. Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High Yield Corporate Bond Fund (OHYG). These products are short-term US treasuries and bonds in popular ETFs managed by firms like Blackrock and PIMCO.
Ondo blog: Announcing Tokenized US Treasuries and Bonds
This makes sense, although calling them "risk-free" is plainly not true. It makes sense now as interest rates have shot up, but there is always a risk they will go up further; and as interest rates rise, the price of bonds falls - that's the risk.
However, Ondo mentions certain restrictions on investors. I haven't looked at those deeply, but if they are somehow freezing out the little people, then why bother investing in another layer of risk when one can just buy bond ETFs?
Good time to launch, as when the yield drops the prices rise - all, of course, relative to a few months ago and 0.1% rates.
So many bond holders now in the shit as those prices have tanked.