Coin columns · Ethereum City (Capital)
OUSG: Ondo Finance’s Tokenized Short-Term US Treasury Fund
A permissioned tokenized fund for qualified investors
OUSG is a token from Ondo Finance that puts shares of a fund investing in short-term US Treasuries onto Ethereum. It is a ‘permissioned’ token that only qualified investors can hold, not a coin anyone can buy.
1. A Treasury fund turned into a token
Ondo Finance, which launched in 2021, turns traditional assets such as US Treasuries into blockchain tokens. OUSG, introduced in January 2023, represents shares of a fund holding short-maturity US Treasuries. ‘Tokenization’ means moving ownership records of traditional assets onto blockchain tokens. It first held mainly BlackRock’s short-term Treasury ETFs, and in 2024 it is said to have switched to BlackRock’s tokenized fund BUIDL as its main underlying asset.
On the Crypto Nation map, OUSG stands in Ethereum City, because it was first issued on Ethereum. It uses Ethereum’s standard token format (ERC-20), but only addresses on an allowlist can exchange it. Issuance is also described as extending to chains such as Polygon, Solana and the XRP Ledger.
2. The allowlist and underlying assets
Investors pass identity checks (KYC) and eligibility review, then send stablecoins or wire dollars to receive OUSG. New tokens are issued to match and burned on redemption. Ondo advertises instant minting and redemption, even on weekends and holidays, since the 2024 restructuring.
Interest from the Treasuries shows up as a rising net asset value (NAV, the value of one fund share). A variant token, rOUSG, instead adds tokens to holders’ balances daily. The fund is described as a Delaware limited partnership managed by an Ondo-affiliated adviser. The permissioned design lets the issuer check eligibility, at the cost of openness.
3. Uses and milestones
OUSG is used by companies, funds and DAOs (online governance groups) to park spare cash in an interest-bearing safe asset. Its selling points are Treasury yield that moves around the clock on-chain and, from 2023, use as collateral for stablecoin loans on Ondo’s Flux Finance. BlackRock’s BUIDL and Franklin Templeton’s BENJI are similar.
Milestones: launch in January 2023, the 2024 shift to a BUIDL-centered structure, and the US SEC’s closure of its Ondo investigation, announced in February 2025. In September 2025 Ondo widened its business with Ondo Global Markets, tokenized stocks and ETFs.
4. Things to know
Only qualified investors under US law may buy OUSG, US ordinary individuals are excluded, and non-US investors must meet similar home standards. It leans on allowlist management, smart contracts, custodians and the issuers of the underlying funds, so trouble at any link could delay redemptions. It cannot be sent to non-allowlisted wallets.
A Treasury fund is not a bank deposit and has no deposit insurance, and income falls when interest rates fall. The management fee is waived until 1 January 2027, according to guidance, so costs may appear afterwards, and returning to Treasury ETFs if BUIDL became unusable would take time.
Written from information public up to October 2026. It does not recommend or rate any coin and is not investment advice. If something is wrong, please tell us through the contact page.