Wintermute and Ondo Finance announce strategic partnership to strengthen liquidity in USDY

4 JAN 2024 | NEWS

Wintermute is pleased to partner with Ondo Finance, an asset manager specializing in tokenized real-world assets, to boost the multi-chain liquidity of Ondo’s US Dollar Yield stablecoin, USDY. The collaboration taps into the substantial interest from traditional and crypto financial institutions in tokenized versions of traditional financial assets and meets the growing market demand for 24/7 institutional-grade liquidity in these tokens.

Justin Schmidt, President at Ondo Finance, commented, “We are delighted to partner with Wintermute, who needs no introduction. Ondo Finance is an asset manager, not a broker dealer, custodian, exchange, nor other financial entity. As such, we rely upon and partner with the best providers of liquidity and custody to help our clients achieve their goals. Wintermute’s 24/7, global distribution will dramatically help USDY token holders source liquidity and help traditional stablecoin holders to achieve a safe, meaningful yield.”

USDY is the world’s first tokenized note secured by a bankruptcy-remote portfolio of US Treasuries and bank deposits. The collaboration between Ondo Finance and Wintermute will allow investors to buy and sell USDY via Wintermute’s OTC desk.

Jonathan Chan, Global Head of Business Development at Wintermute, commented, “As RWAs in crypto gain traction, liquidity emerges as a critical problem. Addressing this challenge is crucial to increase the uptake and in line with our commitment to creating liquid and efficient markets in crypto, accessible to a diverse range of investors. By enabling the redemption of USDY through our OTC desk, we aim to strengthen its market presence, making it an even more viable option for institutional investors.”

As institutions increasingly seek to diversify their portfolios with assets like tokenized treasuries and private equity, this partnership is set to onboard the next generation of financial entities into crypto, by effectively bridging the gap between decentralized and traditional financial assets.