Ondo Spikes 8% as Ondo Finance Tests Instant Conversion From BlackRock’s Tokenized Fund to USDC

An Ondo wallet on Ethereum redeemed $250,000 worth of BUIDL tokens in exchange for USDC, Etherscan data shows. That was an attempt to try out the USDC-to-BUIDL feature announced Thursday by Circle, Ondo Finance CEO Nathan Allman said in a Telegram message to CoinDesk.

“We’re utilizing this for immediate and continuous conversions of OUSG to USDC around the clock, 365 days a year,” Allman explained, with OUSG representing the Ondo Short-Term U.S. Government Treasuries token, secured by U.S. government securities.

Read more: Ondo Finance to Move $95M to BlackRock’s Tokenized Fund for Instant Settlements for Its T-Bill Token

The announcement about Oando’s transaction sparked a 8% increase in its value among crypto communities on social media, which later was followed by a decrease.

Last month, BlackRock, a leading global financial player, gained media attention by joining the competitive field of asset tokenization in the cryptocurrency market. This innovative sector enables the conversion of traditional financial assets like bonds, credits, or commodities into digital form on blockchain platforms.

The BlackRock Digital Liquidity Fund, a collaboration between BlackRock and Securitize, maintains cash, U.S. Treasury bills, and repurchase agreements as assets. This investment vehicle issues the Ethereum-backed BUIDL token for representation of investment. Token holders receive daily yield payments directly through blockchain technology.

One option: Ondo Finance was among the first firms to employ the fund as a supporting asset for its OUSG token.