Wellington Management, a global asset manager overseeing over $1 trillion in assets, has announced a partnership with Ondo Finance to enable intraday redemptions for a newly launched tokenized U.S. Treasury fund.
Ondo Finance is a decentralized finance protocol that is experiencing rapid growth in the tokenized asset market.
Ondo and Wellington join forces on a new tokenized fund
The fund in question is the Delta Wellington Ultra Short Treasury On-Chain Fund, known as ULTRA, launched on the Libeara tokenization platform—backed by Standard Chartered—in collaboration with fund infrastructure firm FundBridge Capital.
The Delta Wellington Ultra Short Treasury On-Chain Fund is live on the Ethereum blockchain, with plans to expand to Arbitrum, Avalanche, and Solana. Under the Wellington-Ondo partnership, Ondo will provide the technology that enables intraday redemptions.
1/ Wellington Management Partners with Ondo Finance to Provide Intraday Redemptions for Tokenized US Treasury Fund
Wellington Management (@Wellington_Mgmt) one of the world’s largest independent asset managers with over $1 trillion in assets, has partnered with Ondo Finance to… pic.twitter.com/dy1tefMxxM
— Ondo Finance (@OndoFinance) October 30, 2024
With intraday redemption capability, investors can enter and exit positions at any time. Both Ondo and Wellington view this as a key step toward increasing the fund’s utility across Web3 ecosystems.
“By enabling 24/7 liquidity, Ondo Finance ensures tokenized assets can be most effectively used as collateral and for cross-border settlement, including within the digital-asset ecosystem,” said Nathan Allman, CEO of Ondo Finance, in a statement.
Ondo also manages Ondo US Dollar Yield (USDY) and the Ondo Short Term US Government Bond Fund (OUSG), two leading tokenized U.S. Treasury offerings.
According to rwa.xyz, USDY and OUSG hold market capitalizations of approximately $444 million and $205 million, respectively, within a tokenized-treasury market currently just over $2.43 billion. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) remains the largest, with more than $533 million.