Ondo Finance has acquired $25 million worth of YLDS, the yield-bearing stablecoin issued by Figure Technology Solutions, as the company continues expanding the reserves supporting its tokenized U.S. Treasurys fund.
The firm said on Monday that YLDS will be added to its onchain reserves alongside tokenized Treasury products issued by BlackRock, Fidelity, Franklin Templeton and WisdomTree.
The Ondo Short-Term US Government Bond Fund (OUSG), designed for institutional users, provides onchain exposure to short-duration Treasurys with 24/7 redemptions and an estimated annual yield of 3.68%. The fund currently holds around $777 million in total value locked.
Figure’s role in the deal
Figure operates lending and capital-markets infrastructure on the Provenance blockchain and has originated more than $19 billion in loans spanning home-equity lines, mortgages and crypto-backed credit.
The purchase comes shortly after Figure completed its Nasdaq IPO. Its YLDS stablecoin has a market capitalization near $100 million, according to DefiLlama.
Ondo, founded in 2021, focuses on tokenizing traditional financial assets. In October, the company expanded its tokenized offerings to BNB Chain, adding more than 100 tokenized stocks and ETFs. Last week, Ondo also received approval from the Liechtenstein Financial Market Authority to offer tokenized stocks in Europe.
Figure’s stock traded nearly 4% higher on Monday, according to Yahoo Finance.
Crypto-backed lending expands in 2025
Crypto-secured lending has seen renewed momentum this year as fintechs, exchanges and lenders expand their collateralized loan products.
In July, Block Earner launched Bitcoin-backed home loans in Australia, allowing borrowers to use BTC as collateral for up to half of a property’s value.
Tether announced an investment in Ledn, which reported originating over $390 million in Bitcoin-backed loans during the third quarter.
Centralized exchanges are also broadening their loan products beyond Bitcoin. On Thursday, Coinbase introduced Ether-backed loans for U.S. customers, enabling borrowing of up to $1 million in USDC against ETH holdings. Coinbase’s onchain lending markets have processed roughly $1.28 billion in originations so far this year, according to Dune data.