Following the approval of a spot Ethereum ETF on Thursday, cryptocurrencies linked to tokenized real-world assets (RWAs) are surging past previous highs, with the CEO of a BlackRock-backed RWA firm saying: Decryption The approval is bullish for the premise of tokenizing assets on Ethereum.
Ondo Finance’s governance token has risen 16% in the past 24 hours to $1.10, leading the cryptocurrency market’s top 100 coins by market capitalization in terms of daily gains as of this writing. Coin Gecko.
The project is focused on offering financial products and services for institutional investors, such as a token that offers US dollar yields and exposure to US Treasury bonds. In 2022, Pantera Capital and Peter Thiel's Founders Fund announced their intention to launch the project. Led The project raised $20 million in Series A funding.
Like the recognition of Ethereum’s regulatory status as a commodity, the approval of several spot ETFs has major implications for companies focused on building digital representations of assets that are traded via on-chain and related infrastructure, Securitize CEO Carlos Domingo said. Decryption.
“The most important thing here is not that you can trade an Ethereum ETF,” he said of Thursday's approval. “At least from an institutional perspective, Ethereum is 1716587168 There is no risk that the gas token (in this case ETH) is actually a security, so it is completely safe to use.”
Ondo, March Said The company plans to move $95 million worth of funds backed by the U.S. Treasury-guaranteed token (OUSG) into BlackRock's tokenized BUIDL fund. Shares in BlackRock's BUIDL fund, established through Securitize, are represented by Ethereum-based tokens and pegged to a price of $1, with fund subscribers receiving a yield in the form of more tokens.
Ondo's move to BlackRock's BUIDL fund was driven by efficiency reasons, Domingo said, explaining that the OUSG token was previously backed by BlackRock's iShares Short Treasury Bond ETF, but that product was relatively cumbersome to administer.
“They're fast issuance, fast redemption, [and] “Visibility on the chain, the knowledge that the money is there, is key,” Domingo says. “One of the use cases for BUIDL is to be a base layer for people to build products on top of it.”
Ondo did not immediately respond to a request for comment. Decryption.
BlackRock CEO Larry Fink called tokenization “Next-generation marketThe company believes that crypto technology can offer financial market participants “reduced fees” and “instant payments,” and plans to launch a “Bitcoin cryptocurrency” starting in 2022.
Domingo called Ondo “very innovative” and said that with BUIDL, redemption of Ondo's products no longer requires five separate steps between the broker-dealer and the custodian who safeguards the assets. Previously, it “took two to three days” to withdraw funds, he said.
Domingo said he expects that with regulatory uncertainty recently allayed following the approval of a spot Ethereum ETF, more stable financial companies will move into the tokenization space.
“In my opinion, [this] “It's more relevant to tokenization than a bitcoin ETF,” he said. “As I said, it's very clear that [Ethereum is] “Because it is not a commodity, using the public Ethereum blockchain is safe from a regulatory perspective.”
Editor: Andrew Hayward
