Ondo Short-Term U.S. Government Bond Fund

OUSG is a tokenized fund giving on-chain exposure to short-term US Treasury bills, managed by Ondo Capital Management, a subsidiary of Ondo Finance. It was among the earliest products to bring the US Treasury rate on chain and helped establish the tokenized Treasury category.

The portfolio is held predominantly in the iShares Short Treasury Bond ETF, with a small allocation to USDC and cash for liquidity. This fund-of-ETF structure is simpler than managing individual securities and provides the underlying liquidity that supports subscriptions and redemptions.

How it works

Eligible investors subscribe and redeem in stablecoins, receiving tokens that represent fund shares. The token's value accrues as the underlying Treasury holdings pay interest, so the price rises over time rather than sitting at a fixed dollar figure. Ondo has worked to reduce settlement times so that subscriptions and redemptions can occur close to instantly rather than on a traditional settlement cycle.

OUSG is available on Ethereum, Solana, and Polygon, and supply is uncapped, currently sitting at roughly 3.23 million tokens. Because each token represents a relatively large unit value, the token count is much lower than for products denominated near one dollar.

Access and context

OUSG is restricted to qualified investors under the applicable rules, which is standard for a private fund. Ondo also issues USDY, a separate yield-bearing instrument aimed at a broader set of non-US holders, so the two products should not be confused.

Tokenized Treasuries have become one of the larger real-world asset categories, driven largely by on-chain treasuries and protocols seeking dollar yield without exiting blockchain settlement.