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Wintermute, a digital asset liquidity provider, has announced a partnership with Ondo Finance, an asset manager focused on tokenized real-world assets. The collaboration aims to increase multi-chain liquidity for Ondo's US Dollar Yield stablecoin, USDY.
This partnership comes as traditional and crypto financial institutions show growing interest in tokenized versions of traditional financial assets. It also addresses the market demand for round-the-clock institutional-grade liquidity for these tokens.
Justin Schmidt, President at Ondo Finance, said: "We are delighted to partner with Wintermute, who needs no introduction. Ondo Finance is an asset manager, not a broker dealer, custodian, exchange, nor other financial entity. As such, we rely upon and partner with the best providers of liquidity and custody to help our clients achieve their goals. Wintermute's 24/7, global distribution will dramatically help USDY token holders source liquidity and help traditional stablecoin holders to achieve a safe, meaningful yield."
USDY is described as the first tokenized note secured by a bankruptcy-remote portfolio of US Treasuries and bank deposits. The partnership will enable investors to trade USDY through Wintermute's over-the-counter (OTC) desk.
Jonathan Chan, Global Head of Business Development at Wintermute, commented: "As RWAs in crypto gain traction, liquidity emerges as a critical problem. Addressing this challenge is crucial to increase the uptake and in line with our commitment to creating liquid and efficient markets in crypto, accessible to a diverse range of investors. By enabling the redemption of USDY through our OTC desk, we aim to strengthen its market presence, making it an even more viable option for institutional investors."
The partnership is expected to facilitate the entry of institutional investors into the crypto space, as they look to diversify their portfolios with assets such as tokenized treasuries and private equity. This collaboration may help bridge the gap between decentralized and traditional financial assets.
