Circle, a stablecoin issuer, introduced a new feature that allows quick redemptions from BlackRock's BUIDL fund to USDC stablecoins. Ondo Finance's ONDO token surged after testing this function, enabling fast conversions between USDC and BUIDL tokens.

Using an Ondo wallet on Ethereum, $250,000 worth of BUIDL tokens were exchanged for USDC, demonstrating the USDC-to-BUIDL feature. Ondo Finance CEO Nathan Allman mentioned that this feature would facilitate instant redemptions of OUSG into USDC.

ONDO gained 8% following news of the transaction, which spread on social media crypto circles. BlackRock recently entered the tokenization race by launching the BlackRock USD Institutional Digital Liquidity Fund with Securitize, offering yield payments via the Ethereum-based BUIDL token.

Ondo Finance was an early supporter of the BlackRock fund, using it to back the OUSG token. This experiment showcased the potential for efficient conversions between different assets in the digital finance space.