Ondo Finance, a company dealing with tokenized real-world assets, recently announced its intention to contribute $95 million of its assets to BlackRock's tokenized fund.

In a blog post on March 27, Ondo Finance revealed its plan to transfer a significant portion of the assets behind the OUSG token to BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). The $95 million allocated to BlackRock represents the entire value locked by the OUSG token, with some of the funds potentially invested in BlackRock's FedFund (TFDXX), the USDC stablecoin, and other assets.

The OUSG token offers exposure to short-term US Treasuries, reflecting Ondo Finance's vision of a tokenized US Treasury fund and showcasing the advancement of traditional securities' tokenization in financial markets. Emphasizing instant settlements and redemptions, Ondo's partnership with BUIDL aligns with its broader strategy.

Alongside this collaboration, reports indicate that BlackRock's BUIDL fund attracted a total of $240 million within its first week of launching. Real-time data demonstrates a balance exceeding $100 million in BUIDL's Ethereum address, primarily funded by USDC seeding. Additionally, community donations, totaling over $141,000, have contributed to the fund's balance.

BUIDL, initiated on March 19 by BlackRock on the Ethereum blockchain, tokenizes assets through the BUIDL token, enabling qualified investors to gain US dollar yields via subscription with Securitize Markets. The fund's investment strategy focuses on cash, US Treasury bills, and repurchase agreements, marking it as the "first tokenized fund issued on a public blockchain" according to BlackRock.