Ondo Finance has made a significant move into the realm of stablecoins by investing $25 million in Figure Technology Solutions' YLDS stablecoin. This strategic investment will be used to back Ondo's Short-Term US Treasuries Fund (OUSG), its flagship tokenized fund. The collaboration aims to accelerate institutional adoption of on-chain finance by combining Figure's blockchain lending infrastructure with Ondo's tokenized asset capabilities.
The addition of YLDS is expected to enhance and diversify the yield source supporting OUSG, complementing its existing portfolio of funds from leading asset managers. OUSG has grown into a flagship product with more than $780 million in total value locked. It delivers instant, 24/7 subscriptions and redemptions, daily interest accruals, low fees, and multi-chain support across Ethereum, Solana, Ripple, and Polygon. OUSG's portfolio spans funds from the world's most trusted asset managers, including BlackRock, Fidelity, Franklin Templeton, and WisdomTree.
Figure Technology Solutions (NASDAQ: FIGR), the company issuing the YLDS stablecoin through its subsidiary Figure Certificate Company (FCC), describes itself as a Provenance Blockchain-native capital marketplace connecting origination, funding, and secondary market activity. Figure recently completed an initial public offering.
YLDS distinguishes itself from other stablecoins by functioning as an SEC-registered security that pays interest to holders and is backed by the same assets as GENIUS Act stablecoins. Michael Tannenbaum, CEO of Figure Technology Solutions, highlighted the shared vision between Figure and Ondo to make money movement faster, more transparent, and more inclusive using blockchain rails. He believes that this partnership bolsters the dominance of the $YLDS stablecoin in tokenized real-world assets.
Ian De Bode, President of Ondo Finance, stated that the investment strengthens OUSG's position as the leading on-chain vehicle for institutional clients and further diversifies and institutionalizes the ecosystem supporting their products.
Figure reports $19 billion in blockchain-based lending on Provenance Blockchain. The collaboration builds on Figure's blockchain-based lending of real-world assets on the Provenance Blockchain. Figure is the largest non-bank provider of home equity financing, having originated over $19 billion in home equity to date with its partners.
Ondo's strategic investment will also support the growth of Figure's ecosystem, particularly around Democratized Prime, where YLDS is the dominant exchange collateral. Together, the two companies aim to accelerate institutional adoption of onchain finance.
Figure's financial health includes revenue of $377.84 million, an operating margin of 21.17%, a net margin of 32.86%, a gross margin of 92.67%, and an EBITDA margin of 43.7%. Figure's most recent securitization received a AAA rating from S&P, marking a milestone for blockchain finance.
