Ondo Finance Bets $25M on Figure’s YLDS Stablecoin to Boost Tokenized Treasury Fund

Ondo Finance has made a fresh move that’s catching attention across crypto news: a $25 million investment into YLDS, a yield-bearing stablecoin issued by Figure Technology Solutions, to strengthen the reserves behind its tokenized U.S. Treasurys product. The deal highlights how blockchain technology and tokenized real-world assets are converging, and why the crypto pur crowd is watching on-chain treasuries and crypto-backed lending more closely than ever.

Ondo Finance’s $25M bet on YLDS

Ondo Finance, a US-based platform focused on tokenizing traditional financial assets, has purchased $25 million worth of YLDS to diversify and enhance the assets backing its flagship Ondo Short-Term US Government Bond Fund (OUSG). YLDS is a yield-bearing stablecoin primarily backed by short-term U.S. Treasurys and repos, and structured as a registered security that pays interest to holders.

OUSG is designed for institutional investors seeking on-chain exposure to U.S. government bonds, offering 24/7 redemptions and an estimated annual yield in the mid-3% range, with total value locked sitting in the high hundreds of millions of dollars. Before this move, OUSG’s reserves were primarily allocated into tokenized Treasury strategies from major asset managers such as BlackRock, Fidelity, Franklin Templeton, and WisdomTree. Adding YLDS broadens the yield sources and makes the fund’s backing more diversified from a risk and liquidity perspective.

Figure’s role in blockchain-based lending

Figure Technology Solutions operates a lending and capital-markets infrastructure built on the Provenance blockchain, with more than $19 billion in originations across home-equity credit lines, mortgages, and crypto-secured loans. Earlier this year, Figure completed a Nasdaq IPO, and its YLDS stablecoin has grown to roughly a nine-figure market capitalization, increasingly used as collateral in on-chain credit markets.

By integrating YLDS into OUSG’s reserves, Ondo isn’t just buying a stablecoin, it is plugging into a live, blockchain-native lending ecosystem. YLDS serves as collateral on Figure’s decentralized credit marketplace, giving it real on-chain utility beyond simple payments or parking cash. That fits neatly with Ondo’s broader vision of moving capital markets on-chain using blockchain technology.

Ondo’s expanding tokenized asset lineup

Ondo Finance launched in 2021 and has quickly become one of the key names in tokenized real-world assets (RWAs). Beyond the OUSG fund, Ondo has rolled out tokenized products on chains like BNB Chain for over 100 tokenized US stocks and exchange-traded funds, opening global, 24/7 access to traditional securities via blockchain rails.

The firm also recently received approval from the Liechtenstein Financial Market Authority (FMA) to offer tokenized stocks in Europe, reinforcing its regulatory-first approach to building compliant, institution-friendly on-chain products. Moves like the YLDS investment signal that Ondo is doubling down on institutional-grade reserves, something the crypto pur community often asks for when evaluating RWA protocols.

Crypto-backed lending momentum

Ondo’s YLDS move comes during a broader acceleration in crypto-backed lending:

• In Australia, Block Earner rolled out Bitcoin-backed home loans, letting borrowers tap up to 50% of a property’s value while holding BTC as collateral with secure custody.
• Stablecoin giant Tether recently invested in Ledn, a Bitcoin-focused lender that originated nearly $400 million in BTC-backed loans in Q3 alone.
• Centralized exchanges are warming up too. Coinbase launched Ether-backed loans for US users, allowing borrowing up to $1 million in USDC  backed by Ethereum collateral, with over a billion dollars in originations flowing through Coinbase’s onchain lending markets within months.

All of this underscores a clear theme: lenders, exchanges, and fintechs are increasingly comfortable using crypto as collateral for real-world credit, and tokenized treasuries and yield-bearing stablecoins like YLDS are becoming core liquidity primitives in that system.

Why this matters for crypto pur and blockchain technology

For crypto pur investors and builders, Ondo’s $25 million YLDS buy is more than just a treasury allocation tweak. It shows:

• Tokenized funds are moving beyond a single asset manager or reserve asset model.
• Yield-bearing stablecoins are evolving into institutional-grade building blocks.
• Blockchain technology is quietly reshaping how treasuries, loans, and collateral markets operate under the hood.

As tokenized treasuries, stablecoins, and crypto-backed lending continue to grow together, deals like Ondo–Figure are likely to become standard headlines in crypto news, and key pillars in the next phase of onchain finance.