Ondo Finance Invests $25 Million in Figure’s YLDS Stablecoin for Treasury Fund

TLDR

• Ondo Finance invested $25 million in YLDS, a yield-bearing stablecoin issued by Figure Technology Solutions, to diversify its tokenized Treasury fund reserves.
• The YLDS stablecoin will back Ondo’s Short-Term US Government Bond Fund (OUSG), which holds $777 million in total value locked and offers 3.68% annual returns.
• Figure Technology operates lending infrastructure on Provenance blockchain and has originated over $19 billion in loans across various products.
• Ondo Finance received regulatory approval from Liechtenstein’s Financial Market Authority to offer tokenized stocks in Europe.
• Figure’s stock price increased nearly 4% following the investment announcement on Monday.

Ondo Finance purchased $25 million worth of YLDS, a yield-bearing stablecoin from Figure Technology Solutions. The investment aims to diversify the assets backing Ondo’s tokenized US Treasury fund.

The company announced Monday that YLDS will join a reserves portfolio already holding tokenized Treasury products from major asset managers. These include funds from BlackRock, Fidelity, Franklin Templeton, and WisdomTree.

Ondo’s Short-Term US Government Bond Fund (OUSG) targets institutional investors. The fund provides onchain exposure to Treasury bonds with 24/7 redemption options.

The OUSG fund offers an estimated annual return of 3.68%. As of Monday, the tokenized fund held approximately $777 million in total value locked.

Figure Technology runs lending and capital-markets infrastructure on the Provenance blockchain. The company has originated more than $19 billion in loans across home-equity lines, mortgage products, and crypto-backed credit.

Figure completed its Nasdaq IPO earlier this year. According to DefiLlama data, the YLDS stablecoin has a market capitalization of around $100 million.

Ondo Finance Expands Global Operations

Ondo Finance is a US-based platform founded in 2021 that tokenizes traditional financial assets. The company has been expanding its product offerings across multiple blockchains.

In October, Ondo expanded its tokenized asset lineup to BNB Chain. The expansion added more than 100 tokenized Wall Street stocks and exchange-traded funds onchain.

On Wednesday, the platform received regulatory approval from the Liechtenstein Financial Market Authority. The approval allows Ondo to offer tokenized stocks in Europe.

Crypto-Backed Lending Market Growth

Crypto-backed lending continues to gain traction across the financial sector. The trend has accelerated in 2025 as more lenders revive and expand crypto-collateralized loan products.

In July, Block Earner introduced Bitcoin-backed home loans in Australia. Borrowers can access cash worth up to half a property’s value with crypto collateral safeguarded by Fireblocks.

On Tuesday, stablecoin issuer Tether announced an investment in Ledn. The platform provides Bitcoin-backed consumer loans and originated over $390 million in BTC-backed loans during the third quarter.

Centralized exchanges are also expanding into this space. On Thursday, Coinbase rolled out Ether-backed loans for US customers.

Users can borrow up to $1 million in USDC against their Ether holdings. Coinbase’s onchain lending markets have handled about $1.28 billion in loan originations since launching earlier this year.

Figure Technology Solutions, Inc. Class A Common Stock, FIGR

Figure’s stock price rose nearly 4% in early trading on Monday. Ondo Finance president Ian De Bode said Figure has built infrastructure for tokenized lending and integrating YLDS into OUSG’s yield strategy will further diversify the ecosystem.

Figure Technology CEO Michael Tannenbaum stated the Ondo investment represents another step toward delivering on the company’s vision following its IPO. ONDO token traded at $0.4853 on Monday, up over 2% in 24 hours following the announcement.

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