RWA tokenization platform Ondo Finance has partnered with Cosmos-based Noble chain to bring its tokenized products to Cosmos.Ondo is one of the largest players of the booming tokenized Treasury market with $300 million of deposits.Unmute

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Tokenized real-world asset (RWA) platform Ondo Finance (ONDO) said Thursday that it has teamed up with asset issuance chain Noble to bring its tokenized U.S. Treasury offerings to the Cosmos (ATOM) ecosystem.

The first asset Ondo plans to issue natively via Noble is USDY, a tokenized note backed by short-term U.S. Treasuries offering a 5.2% annual yield, targeting the end of the second quarter of this year, a spokesperson told CoinDesk. USDY is currently available on Ethereum, Solana, Mantle and Sui.

Ondo's expansion to Cosmos means that its token offerings will be integrated to over 90 blockchains in the Cosmos ecosystem, boosting adoption for its products backed by U.S. Treasuries as a yield-earning savings, payment and collateral asset.

Cosmos, often described as the "internet of blockchains," is an interoperability network of individual blockchains including dYdX (DYDX), Celestia {{TIA}}, Sei (SEI) and Injective (INJ). Noble is an application-specific chain within the ecosystem designed to issue native digital assets, and Ondo will use the chain as a "routing hub" for liquidity within the Cosmos ecosystem.

"Having Noble as our issuance partner will bring vastly improved utility and liquidity to appchains and their users, all while offering exposure to yielding instruments,” said Nathan Allman, founder of Ondo Finance.

Ondo Finance is one of the largest players in the $1.2 billion tokenized Treasury market, which has seen significant growth in the past year as crypto investors and digital asset companies sought safe ways to park their blockchain-based cash holdings and earn a yield. Ondo's tokenized offerings attracted over $300 million of deposits since debuting in early 2023.

Recently, traditional asset management giant BlackRock partnered with Securitize to enter the field with a Treasury-backed token BUIDL, which Ondo now uses to back its OUSG token.

Edited by Stephen Alpher.