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Ondo Finance Announces New Token, OMMF, Providing Tokenized Exposure to US Money Market Funds, Targeting $100 Billion Stablecoin Market
OMMF is Ondo's next step in bringing institutional-grade financial products and services on-chain, for everyone. US money market funds manage more than $5 trillion and serve as a compelling alternative to bank deposits for many investors. OMMF complements Ondo's existing offering, a tokenized US Treasuries vehicle called OUSG, which has found early success helping digitally-native institutions incorporate best practices for cash management.
Ondo will process daily subscriptions and redemptions in stablecoins as well as traditional fiat, and Ondo will offer instant redemption on-chain for certain amounts of OMMF. Investors will receive OMMF tokens on the Ethereum blockchain representing their ownership. These tokens will be transferable between whitelisted investor addresses, as well as any smart contract that passes a compliance review. Ondo envisions investors using smart contracts to engage in on-chain trading, lending, and settlement with the fund tokens alongside traditional crypto assets. OMMF will be backed by an established, yet-to-be-disclosed MMF. Like OUSG, OMMF's assets are ring-fenced and held remotely from Ondo's balance sheet.
"First generation stablecoins were revolutionary," says Justin Schmidt , President and COO. "For the first time, digital cash was available on-chain, globally, 24/7. They were created when interest rates were near zero, so designing them to be able to pass on yield was not a focus. By tokenizing money market funds we are able to deliver the price stability and on-chain utility of stablecoins while providing superior investor protections and passing on yield to holders, creating what we believe is a superior store of value, means of settlement, and form of collateral for the on-chain economy."
Ondo's mission is to provide institutional-grade, blockchain-enabled investment products and services. Ondo has a technology arm that develops decentralized finance technology as well as an asset management arm that creates and manages tokenized funds.
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View original content:https://www.prnewswire.co.uk/news-releases/ondo-finance-announces-new-token-ommf-providing-tokenized-exposure-to-us-money-market-funds-targeting-100-billion-stablecoin-market-301796678.html