This fund is the Delta Wellington Ultra Short Treasury On-Chain Fund or ULTRA ULTRA and runs on Ethereum. However, there are plans to expand to Arbitrum, Avalanche, and Solana as well.
Wellington Management, an asset management company with over $1 trillion in assets, has partnered with Ondo Finance to power intraday redemptions for its newly announced tokenized U.S. Treasury fund.
Ondo is a decentralized finance protocol experiencing rapid growth in the tokenized asset market.
Ondo and Wellington partner on new tokenized fund
The fund in question is the Delta Wellington Ultra Short Treasury On-Chain Fund (ULTRA). It was launched by Standard Chartered-backed tokenization platform Libara in collaboration with fund management infrastructure company FundBridge Capital.
Delta Wellington Ultra Short Treasury On-Chain Fund runs on the Ethereum blockchain. However, the publisher has plans to expand it to Arbitrum, Avalanche, and Solana. A partnership between Wellington Management and Ondo Finance, with the latter providing the technology to enable intraday redemptions.
This allows investors to enter and exit positions at any time. Ondo and Wellington believe this is an important step toward increasing the fund's utility across Web3.
Ondo Finance CEO Nathan Allman said in a statement: “Ondo Finance enables 24/7 liquidity to support tokenized assets as collateral and across borders, including the digital asset ecosystem. “We are making sure that it can be used most effectively for payments.”
Ondo has two of the top tokenized US Treasury funds: Ondo US Dollar Yield (USDY) and Ondo Short Term US Government Bond Fund (OUSG).
According to rwa.xyz, the market caps of USDY and OUSG are $444 million and $205 million, respectively. But it's worth noting in a market that's currently worth just over $2.43 billion.
BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is the largest with over $533 million.
