Wall Street Builds Onchain Collateral With $407M OUSG Fund

Ondo’s OUSG Short-Term U.S. Treasuries Fund reports $407.24 million in tokenized Treasury exposure, with roughly $222.07 million recorded on the XRP Ledger and $185.17 million on Ethereum. The fund lists a 3.45% APY, allows instant minting and redemption with a $5,000 minimum, and is limited to accredited investors and qualified purchasers.

Ondo’s public data shows OUSG holds positions in several other tokenized Treasury vehicles. As of July 10, the fund lists about $150 million in the State Street Galaxy Onchain Liquidity Sweep Fund, $101.01 million in BlackRock’s BUIDL, $77.08 million in Franklin Templeton’s BENJI, and $69.10 million in the Fidelity Treasury Digital Fund.

The tokens represent claims on fund shares or fund claims rather than direct issuance of sovereign bonds on a public ledger. Tokenization in these products is used to record ownership, move transfer rails onto blockchain infrastructure, and speed settlement and subscription mechanics while the legal ownership and investor rights remain governed by traditional fund documents and securities law. The White House Digital Assets Report tied to Executive Order 14178 states regulatory treatment follows the nature of the underlying asset.

Access controls are part of the operational design. OUSG’s investor limits, permissioned platforms, transfer restrictions and administrator oversight are listed in the fund documents. Those controls affect trading and liquidity: a large reported asset value does not automatically mean unrestricted secondary trading or immediate exits in stressed conditions if transfers and redemptions are limited.

Market participants use short-duration government paper as onchain collateral because Treasury bills and government money funds are widely accepted in conventional finance, are generally viewed as low risk, and are straightforward to price. Stablecoins provide fast dollar settlement but typically do not serve as yield-bearing collateral. Tokenized Treasury exposures offer yield-bearing options that can be recorded and transferred on blockchain rails while retaining established legal frameworks.

The OUSG holdings show tokenized funds allocating to other tokenized funds, creating portfolio interactions within the digital ecosystem. Those allocations make it possible to trace counterparty identities, custody arrangements, and the treatment of redemption events within the tokenized structure.

Current products use established financial wrappers such as money fund shares, Treasury-heavy fund structures and qualified-access vehicles. These wrappers are recorded and transferred in programmable ways on blockchain infrastructure while the underlying legal protections and fund governance remain in place.