– Ondo Finance announces a new token, OMMF, offering tokenized exposure to US money market funds, with the goal of reaching the $100 billion stablecoin market
GREENWICH, Conn., April 13, 2023/PRNewswire/ — Ondo Finance today announced a new token, OMMF, that allows global stablecoin holders to invest in tokenized exposure to US money market funds. OMMF will be purchasable and redeemable for one dollar and will be fully backed by US government money market funds. Unlike traditional MMFs, OMMF will be globally transferable 24/7, on the public Ethereum blockchain, and compatible with on-chain financial infrastructure such as decentralized lending protocols. To keep its price constant, OMMF will make daily distributions in the form of new OMMF tokens to investors.
“As the world moves towards a more digital and decentralized future, OMMF represents a long-term opportunity to offer savers a superior way to store and transfer wealth,” said Nathan Allman, founder and CEO of Ondo Finance. What stablecoins have done for cash, OMMF will do for money market funds, unlocking their potential to be used not only as a store of wealth – their main current use – but also as an affordable collateral and settlement alternative. Worldwide”.
OMMF is Ondo’s next step to make institutional quality financial products and services available to everyone. US money market funds manage more than $5 trillion and are an attractive alternative to bank deposits for many investors. OMMF complements Ondo’s current offering, a US Treasury tokenized vehicle called OUSG, which has seen 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 on-chain redemptions for certain amounts of OMMF. Investors will receive OMMF tokens on the Ethereum blockchain that represent their property. 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 transact, lend, and settle on-chain with the fund’s tokens alongside traditional crypto assets. OMMF will be supported by an established MMF, yet to be disclosed. Like OUSG, OMMF’s assets are protected and kept off Ondo’s balance sheet.
“The first generation of stablecoins was revolutionary,” said Justin Schmidt, president and COO. “For the first time, digital money was available on-chain, around the world, 24/7. They were created when interest rates were close to zero, so their design was not focused on the possibility of transmitting performance. By tokenizing money market funds, we are able to offer stablecoin price stability and utility on-chain, while providing greater investor protection and transferring yield to holders, creating what we believe to be a pool of superior value, means of settlement and form of collateral for the on-chain economy”.
About Ondo FinanceOndo’s mission is to offer blockchain-based institutional investment products and services. Ondo has a technology branch that develops decentralized financial technology and an asset management branch that creates and manages tokenized funds.
Contact:
Email: investors@ondo.financePágina web: https://ondo.financeTwitter: @OndoFinance
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