![]() ![]() With a Bitcoin ETF, the companies are taking a new technology like Bitcoin and putting it into a more traditional wrapper familiar that's to the industry. Ondo, which invests in BlackRock-managed Treasury ETFs, appears to be going in the opposite direction of this crowd. Larry Fink, BlackRock’s CEO, recently went so far as to liken Bitcoin to “ digitalizing gold ,” a sharp reversal from his previously critical views. ![]() It was followed by other applications, including from big names like Fidelity, Valkyrie, and Invesco among others. On June 15, BlackRock, the world’s largest asset manager, filed to register a Bitcoin spot market exchange traded fund. Ondo’s move to expand its tokenized financial offerings comes at a time when TradFi behemoths are eying entryways into cryptocurrency, specifically Bitcoin. In the wider market for tokenized assets, there are other big players like Franklin Templeton, which has just over $294 million in market cap on the Stellar network, according to the RWA.xyz analytics dashboard. Today, Ondo has the largest market share of tokenized assets on Ethereum, with nearly $158 million in market capitalization, according to Dune Analytics. In contrast, a stablecoin is an entirely digital token that draws its value from its peg to a fiat currency or commodity to keep its volatility in check. Ī tokenized asset is a blockchain-based signature of ownership with the underlying properties like yield remaining the same as the real-world equivalent. This has also raised the yields for Treasuries, with yields on short-term bonds like the 2-year note rising from just 1.9% yield when the rate hikes started in March of last year to almost 5% today. "I think what's happened over the past three years is just the macro environment has shifted in the world, and you actually can earn a pretty material interest rate now on something like Treasuries," Schmidt told Decrypt.įor more than a year, the Federal Reserve and other central banks have been lifting interest rates to tamp down on inflation. In an interview with Decrypt, Schmidt added that the change comes at a ripe moment when more returns are possible in the DeFi ecosystem than sticking with other assets like stablecoins. Justin Schmidt, president and chief operating officer of Ondo Finance, said that the arrangement with Polygon would facilitate more access on-chain to institutional assets. ![]()
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