Ondo Finance has launched 24/7 instant conversions between its tokenized Treasury product, OUSG (Ondo Short-Term US Government Treasuries), and PayPal USD (PYUSD), the stablecoin issued by Paxos and available via PayPal and Venmo.
The update allows users to seamlessly mint OUSG using PYUSD and redeem it back to PYUSD anytime, offering greater liquidity for OUSG holders and boosting the real-world utility of PayPal’s stablecoin.
The $25 million conversion facility is one of the largest of its kind between a stablecoin and tokenized money market fund.
“Enabling OUSG and PYUSD conversions broadens the range of trusted, high-quality settlement options available to our clients,” said Nathan Allman, CEO of Ondo Finance. “We’re thrilled to deepen our relationship with PayPal and play a leading role at the intersection of traditional finance and DeFi.”
The launch is part of Ondo Nexus, the firm’s tech platform that supports instant liquidity for tokenized Treasury issuers. With this system, holders of tokenized Treasuries — including those offered by other issuers — will be able to redeem their assets instantly for stablecoins like PYUSD.
OUSG remains Ondo’s flagship product with over $525 million in total value locked. It offers 24/7 redemptions with no fees, daily interest accruals, and multi-chain support on Ethereum and Solana.
The fund is backed by high-quality assets, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), Franklin Templeton’s OnChain U.S. Government Money Fund, WisdomTree’s Digital Government Money Market Fund, and FundBridge Capital’s Ultra Short Treasury On-Chain Fund.