Ondo’s OUSG fund, a tokenized US Treasury product, reported $407.24 million in total assets on July 10, 2026, with a 3.45% annual percentage yield and a $5,000 minimum for instant investments. The fund is limited to accredited investors and qualified purchasers and distributes holdings across two blockchains, with $222.07 million on the XRPL network and $185.17 million on Ethereum.

The fund holds positions in several other tokenized Treasury products, including $150 million in the State Street Galaxy Onchain Liquidity Sweep Fund, $101.01 million in BlackRock’s BUIDL, $77.08 million in Franklin Templeton’s BENJI, and $69.10 million in Fidelity Treasury Digital Fund. These holdings illustrate how tokenized sovereign debt is being used as collateral within other digital asset products.

Tokenization alters the operational layer of ownership records, transfer rails, and settlement processes while the underlying legal claim remains unchanged. The White House Digital Assets Report, issued under Executive Order 14178, states that regulatory treatment follows the nature of the underlying asset, meaning that a token representing a security retains its security status. Access restrictions therefore persist, with most products requiring identity verification and limiting transfers.

Live asset value does not guarantee liquidity. The fund’s size indicates operational maturity, but redemption gating and a concentrated investor base can affect secondary market depth. The growth of tokenized sovereign debt reflects incremental infrastructure development rather than a resolution of all liquidity concerns.

Institutional interest is evident through participation by major asset managers. The products demonstrate that regulated financial structures can be adapted to blockchain environments without altering legal claims. This development aligns with broader efforts to integrate traditional collateral into digital finance systems.