OUSG (OUSG)
OUSG is a tokenized financial product that bridges traditional finance and blockchain technology by bringing the exposure of short-term US Treasury bills to the decentralized finance (DeFi) space. It is managed by Ondo Capital Management, a subsidiary of Ondo Finance, which is known for developing innovative financial solutions in the DeFi ecosystem.
The structure of OUSG
OUSG operates as a tokenized short-term US Treasury bills ETF. The majority of its portfolio is invested in the iShares Short Treasury Bond ETF (NASDAQ: SHV). This structure provides a stable and predictable return, offering investors exposure to the 'risk-free' US Treasury rate on-chain for the first time. In addition to the Treasury bond holdings, OUSG maintains a small portion of its assets in USDC and USD to ensure liquidity.
| Ticker | OUSG |
| Category | Tokenized Assets |
| Website | https://ondo.finance/ |
| @ondofinance | |
| Contract Addresses | |
|---|---|
| ethereum | 0x1b...92 Copied! |
| polygon-pos | 0xba...11Copied! |
| solana | i7...NcCopied! |
The role of Ondo Finance
Ondo Finance, the entity behind OUSG, was launched in August 2021. It initially introduced Ondo Vaults, a structured finance protocol on Ethereum, and Liquidity-as-a-Service (LaaS), which facilitated over $210 million in total liquidity. As DeFi yields compressed in 2022, Ondo Finance shifted its focus from these initial offerings (collectively known as "Ondo V1") to developing next-generation protocols, leading to the launch of Ondo V2 in January 2023.
Ondo's suite of tokenized funds
OUSG is part of a trio of fund tokens developed by Ondo Finance, alongside OSTB and OHYG. These funds are part of the Ondo V2 initiative, focusing on creating secure, stable, and liquid investment opportunities that align with the broader investment strategies used by major institutional investors globally. Ondo funds are characterized by their investments in ETFs backed by secure and liquid securities.
How OUSG works
OUSG tokens represent a share in the fund and offer the flexibility of blockchain technology. Investors who pass know-your-customer (KYC) and anti-money laundering (AML) screenings and sign the necessary subscription documents can own these tokens. They can transfer OUSG tokens among themselves, facilitating changes in fund ownership. This tokenized structure enables investors to engage in various financial activities such as lending and trading using smart contracts.
Transfer restrictions and investor qualifications
OUSG tokens come with transfer restrictions to ensure compliance with regulatory requirements and to maintain the integrity of the fund. These restrictions prevent the tokens from being transferred to individuals who are not qualified investors, thereby safeguarding the fund's structure and investor base.