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November 25, 2025:
Ondo Finance, the leading institutional-grade real-world asset (RWA) tokenization platform, has acquired $25 million worth of Figure Technologies’ yield-bearing YLDS stablecoin.
The move instantly elevates OUSG’s blended APY to 3.68% while adding a regulated, interest-accruing stablecoin alongside tokenized assets from BlackRock, Fidelity, and Franklin Templeton.
The transaction marks one of the clearest signals yet that 2025 is the year TradFi and DeFi stop circling each other and start merging balance sheets.
Key Takeaways
- Ondo’s $25M YLDS position pushes OUSG’s blended yield to 3.68% with zero change to its risk rating.
- YLDS becomes the first regulated, interest-paying stablecoin to join BlackRock and Fidelity products inside a major tokenized Treasury fund.
- The partnership cements Figure’s Provenance Blockchain as a leading rail for institutional lending and collateral.
- Tokenized RWA momentum is accelerating into 2026, with stablecoin-backed assets positioned as the primary growth driver.
- Institutional investors now have a single, multi-chain vehicle (OUSG) offering daily liquidity and diversified exposure to both traditional and blockchain-native yields.
Background on Ondo Finance and Figure
Ondo Finance, launched in 2021, has grown into the largest issuer of tokenized US Treasurys with over $777 million in OUSG alone. The fund offers daily interest accrual, instant redemptions, and native compatibility across Ethereum, Solana, Mantle, and Aptos.
Figure Technologies, the blockchain lending pioneer that went public on Nasdaq (ticker: FIGR) earlier this year, has originated more than $19 billion in loans on its Provenance Blockchain.
Its flagship YLDS stablecoin, currently ranked among the top 15 yield-bearing stablecoins with roughly $100 million market cap, is an SEC-registered security that distributes interest directly to holders, setting it apart from traditional fiat-collateralized tokens.
The Strategic Investment Breakdown
The $25 million purchase was executed on-chain and confirmed by both companies on November 24. YLDS now sits alongside tokenized short-term Treasurys from BlackRock’s BUIDL, Fidelity, and Franklin Templeton within OUSG’s reserve basket.
Figure CEO Mike Cagney stated:
“This investment validates YLDS as institutional-grade collateral and accelerates our mission to bring real-world lending on-chain at scale.”
Ondo President Ian De Bode added:
“Adding YLDS enhances liquidity and yield stability for OUSG while maintaining the highest compliance standards our investors demand.”
Figure’s stock (FIGR) rose nearly 4% in early trading following the announcement.
Implications for TradFi-Crypto Fusion and RWA Growth
The integration goes beyond simple diversification. YLDS is already accepted as collateral on Figure’s Democratized Prime platform, where it backs tokenized home-equity lines of credit (HELOCs).
By holding YLDS, OUSG indirectly gains exposure to one of the fastest-growing on-chain credit markets while preserving its investment-grade risk profile.
Analysts see the deal as part of a broader 2025 trend: Tether’s strategic investment in Ledn, Block Earner’s Bitcoin-collateralized loans in Australia, and now Ondo’s embrace of a regulated yield-bearing stablecoin.
Boston Consulting Group and Moody’s both project the total addressable market for stablecoin-backed RWAs could surpass $500 billion by 2027 if regulatory clarity continues.
Conclusion
Ondo Finance’s $25 million bet on YLDS is more than a portfolio tweak, it’s a blueprint for the next phase of real-world asset tokenization.
As yield-bearing, regulated stablecoins like YLDS gain traction as collateral across lending protocols and prime brokerage platforms, the line between Wall Street balance sheets and blockchain rails continues to vanish.
For investors watching the RWA sector, OUSG just became the clearest barometer of that convergence.
Read Next:
- Why Stablecoin Marketing Must Evolve From Features to Trust
- The Future of Stablecoins: What's Next in 2026 and Beyond
- Best Wallets for Storing Stablecoins Securely in 2025
FAQs:
1. What is Ondo Finance’s $25M investment in YLDS stablecoin?
Ondo Finance purchased $25 million of Figure’s yield-bearing, SEC-registered YLDS stablecoin to diversify reserves in its $777 million OUSG tokenized US Treasurys fund, lifting the blended APY to 3.68%.
2. How does YLDS stablecoin differ from traditional stablecoins?
YLDS is an interest-paying, SEC-registered security backed by real-world loans (primarily HELOCs), unlike non-yielding fiat-collateralized stablecoins such as USDC or USDT.
3. What impact does this Ondo-Figure deal have on RWA tokenization?
It integrates a regulated yield-bearing stablecoin into one of the largest tokenized Treasury funds, accelerating institutional adoption and reinforcing projections of $500 billion in stablecoin-backed RWAs by 2027.
4. Why is Ondo diversifying OUSG with YLDS now in 2025?
To capture additional on-chain yield and liquidity while maintaining investment-grade compliance, capitalizing on the 2025 surge in regulated crypto lending products.
5. What are the benefits of investing in Ondo’s OUSG fund after the YLDS addition?
Investors get 3.68% APY, daily accruals, instant redemptions, multi-chain access, and diversified exposure to BlackRock/Fidelity Treasurys plus Figure’s regulated yield-bearing stablecoin in a single low-fee product.
