Ondo Finance Makes Big Change in Reserve Strategy With $25M Investment in Figure

Ondo Finance has taken a notable step in reshaping the reserve strategy behind its flagship tokenized treasury product. This comes as on Monday, the RWA leader announced a $25 million strategic investment in Figure Technology Solutions’ yield-bearing stablecoin, $YLDS. The purchase will see YLDS added to the reserve mix that backs Ondo’s OUSG short-term U.S. Treasuries token.

This is a move Ondo’s Partnership Head Katie Willer says “will diversify yield sources” and bolster the fund’s on-chain liquidity and institutional appeal.

Source: Linkedin Post

Ondo Finance Invests in Figure’s Yield-Bearing Stablecoin

A yield-bearing stablecoin is fundamentally different from a regular stablecoin, even though both aim to maintain a near-$1 value.

A regular stablecoin—such as USDT, USDC, or BUSD—is pegged to $1 and backed by reserves, typically cash, cash equivalents, and short-term U.S. Treasuries. However, holders do not earn any yield from those underlying assets. Instead, the issuer (like Tether or Circle) captures the interest generated by the reserves.

In contrast, a yield-bearing stablecoin—such as YLDS (Figure), sDAI (Maker), USDY (Ethena), or USDM (Mountain Protocol)—is still designed to maintain a ~$1 value but automatically pays holders interest. These tokens are generally backed by short-term Treasuries or other interest-bearing assets, and the yield is passed directly to users instead of being kept by the issuer.

Also Read: Reserve Strategies of Top Stablecoin Issuers

And Figure’s $YLDS is not a run-of-the-mill stablecoin. Launched by Figure and issued through its Figure Certificate Company unit in February 2025, it is  first interest-bearing transferable stablecoin. YLDS is structured as a registered debt security that pays interest and is backed largely by short-term U.S. Treasuries and repo agreements.

Because it is registered with the U.S. Securities and Exchange Commission, YLDS is designed to offer a yield profile and regulatory clarity that many unregulated algorithmic or fiat-backed stablecoins lack. These are the characteristics Ondo said were central to the decision to invest.

For Figure, Ondo’s capital is both a commercial vote of confidence and a step toward wider adoption of YLDS across institutional railways.  The investment from Ondo Finance could help deepen YLDS liquidity and accelerate its use as collateral in DeFi primitives and institutional Treasury operations.

Also Read: Animoca to Get Fund Manager License

Ondo’s Change in Reserve Strategy

Interestingly, the move by Ondo Finance is explicitly tactical. The $25 million investment is being directed toward backing OUSG, Ondo’s tokenized fund focused on short-term U.S. Treasuries. By incorporating YLDS into the reserve mix, Ondo is not simply continuing to rely on traditional treasury exposures from large asset-managers such as BlackRock and Fidelity Investments. Instead, it is integrating a yield-bearing stablecoin as part of its reserves, signalling a significant shift in strategy.

According to the firm, this transaction complements its existing partnerships with major asset managers and will enhance OUSG’s toolkit for generating and stabilising yield. By adding YLDS, Ondo aims to spread risk: if YLDS behaves differently than ETF-like treasury exposures, OUSG may benefit from either more stable yields or a differentiated yield profile altogether.

As of the latest data from RWA.xyz, OUSG’s total value locked (TVL) stands at approximately $783.6 million, with a net asset value (NAV) of $113 per token. The circulating token supply is around 6,914,630.10 OUSG, with 78 holders recorded.

Share

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Source: https://coingape.com/block-of-fame/pulse/ondo-finance-makes-big-change-in-reserve-strategy-with-25m-investment-in-figure/