Ondo Finance has made a significant move by investing $25 million in YLDS, a yield-generating stablecoin provided by Figure Technology Solutions. This investment aims to diversify the assets backing its tokenized US Treasurys fund, a part of a broader strategy to enhance on-chain treasury reserves amidst an increasing interest in crypto-backed lending across the financial sector.
The announcement, made on Monday, states that YLDS will augment an already substantial reserves portfolio that includes tokenized Treasury products from prominent asset managers like BlackRock, Fidelity, Franklin Templeton, and WisdomTree.
ONDOSG (Ondo Short-Term US Government Bond Fund) is designed for institutional investors, providing on-chain exposure to Treasurys with 24/7 redemption options, offering an estimated annual return of 3.68%. Currently, the tokenized fund holds about $777 million in total value locked (TVL).
Figure operates lending and capital markets on the Provenance blockchain and has processed over $19 billion in loans, mainly focusing on home-equity lines, mortgage products, and crypto-backed credit. This partnership follows Figure’s recent completion of its Nasdaq IPO earlier this year. According to data from DefiLlama, the YLDS stablecoin features a market capitalization of approximately $100 million.
Ondo Finance, founded in 2021 and based in the US, specializes in tokenizing conventional financial assets. This October, they expanded their tokenized asset offerings to BNB Chain, incorporating over 100 tokenized Wall Street stocks and exchange-traded funds.
In a notable regulatory achievement, the platform recently received approval from the Liechtenstein Financial Market Authority (FMA) to offer tokenized stocks in Europe.
On the stock market, Figure’s share price rose nearly 4% during early trading on Monday, as reported by Yahoo Finance.
Crypto-backed Lending Trends
Globally, crypto-backed lending is experiencing growth, particularly in 2025, as more lenders are reintroducing and expanding crypto-collateralized loan options. Recently, Block Earner launched Bitcoin-backed home loans in Australia, allowing borrowers to access cash worth up to 50% of a property’s value while securing their crypto collateral with Fireblocks.
Tether has also announced an investment in Ledn, a platform providing Bitcoin-backed loans. In the third quarter, Ledn disclosed originating over $390 million in BTC-backed loans.
Centralized exchanges are broadening their range of offerings. For example, on Thursday, Coinbase unveiled Ether-backed loans for US customers, permitting users to borrow up to $1 million in USDC backed by their Ether holdings. Since its launch, Coinbase’s on-chain lending markets have recorded around $1.28 billion in loan originations, based on Dune data.
