Ondo's $407M Treasury Fund Shows Wall Street Building Crypto's Collateral Layer

Ondo's OUSG treasury fund reached $407 million on-chain

Ondo Finance's Short-Term US Treasuries Fund, traded as OUSG, held about $407.24 million in total value on 10 July 2026. The fund quoted a 3.45% annual percentage yield (APY) at that snapshot. Its assets span two blockchains. Roughly $222.07 million sat on the XRP Ledger, and about $185.17 million sat on Ethereum. The larger share sits on the XRP Ledger, a network more often tied to payments than to tokenized bonds. The dual-chain setup means one regulated fund now settles across two separate networks at once.

The fund routes capital into four Wall Street issuers

OUSG does not buy Treasury bills directly. It allocates into competing tokenized Treasury products from established asset managers. The largest position was about $150 million in the State Street Galaxy Onchain Liquidity Sweep Fund, which yielded 3.46%. OUSG also held roughly $101.01 million in BlackRock's BUIDL at 3.45%, $77.08 million in Franklin Templeton's BENJI at 3.51%, and $69.10 million in the Fidelity Treasury Digital Fund at 3.47%. Those four holdings account for close to $397 million of the fund's reported value. The yields sit within a narrow band, from 3.45% to 3.51%. The mix shows OUSG treating rival products as interchangeable sources of Treasury yield.

OUSG restricts access to accredited and qualified investors

The fund is not open to retail buyers. Instant investments and redemptions carry a $5,000 minimum. Access is limited to accredited investors and qualified purchasers. The minimum and the investor limits sit well above the thresholds on retail crypto products. This structure keeps the product inside a regulated fund wrapper. The ownership records, transfer rails and settlement move onto blockchain infrastructure, while the underlying Treasuries stay inside that regulated structure.

OUSG works as a wrapper over institutional funds

The design gives qualified clients programmatic access to institutional Treasury products. Ondo holds units of funds such as BUIDL one layer up. Its clients gain exposure without signing each asset manager's subscription documents directly. This model lets one on-chain product aggregate several regulated funds. It also lets holders mint and redeem around the clock. The around-the-clock model contrasts with legacy funds, which price and settle only on business days.

ONDO token trades near $0.32 at publication

Ondo Finance also issues a governance token that is separate from the fund. ONDO traded at $0.3175 with a $1.55 billion market capitalization, down 2.08% over the past 24 hours (CoinPaprika, 13 July 2026). The token does not represent a claim on the OUSG portfolio. OUSG shares track the underlying Treasury fund, not the ONDO market price.

Tokenized treasuries now form a visible collateral layer

The OUSG snapshot shows a category moving past its theoretical stage. It now carries named issuers, disclosed balances, visible yields and defined investor thresholds. One fund holding positions in four rival products also shows these instruments interacting as portfolio building blocks. BlackRock, Ondo and Franklin Templeton together manage over $7 billion in tokenized Treasuries. That figure represents more than half of the on-chain Treasury market. For crypto trading desks, tokenized Treasuries offer collateral that earns yield while settling on-chain. That combination has been missing from digital-asset markets, where cash collateral usually sits idle. The pattern points to Wall Street assembling the collateral layer that crypto markets have so far lacked.

Primary source: Source ↗