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Ondo and BlackRock pitch a Treasury fund capped at $25 million a day for Sky's $1 billion tokenization pool
Ondo, BlackRock and Securitize pitched OUSG for Sky's roughly $1 billion tokenization allocation, offering 24/7 redemptions capped at $25 million a day. Much of OUSG's money sat in BlackRock's BUIDL fund, so BlackRock manages the underlying Treasuries whether Sky chooses OUSG or BUIDL.
The Investor · Invest desk
What happened
- Ondo Finance, working with BlackRock and Securitize, submitted its tokenized Treasury fund OUSG to Sky's Spark Tokenization Grand Prix.
- Sky, the protocol formerly known as MakerDAO, ran the Grand Prix to bring roughly $1 billion of tokenized traditional assets into its ecosystem.
- OUSG offered round-the-clock subscriptions and redemptions, with daily capacity set at $25 million to start and slated to rise.
- When Ondo submitted the fund, a large share of OUSG's holdings sat in BlackRock's BUIDL, the tokenized money-market fund Securitize administers.
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Why it matters
- constraint At the starting cap, Sky could move only about 2.5% of a $1 billion pool through OUSG in a day, so repositioning a large reserve sleeve would take weeks.
- exposure Sky reserve dollars placed in OUSG would sit two funds deep, with Ondo's wrapper on top and BlackRock's BUIDL, administered by Securitize, underneath.
- precedent Direct OUSG-BUIDL conversions would make a crypto-native wrapper and the fund beneath it interchangeable, forcing Ondo's access terms and fees to compete with BlackRock's own product.
- decision Sky has to decide how much of its reserve moves off crypto-native collateral into tokenized Treasuries and credit, and how thinly to spread it across competing issuers.
At OUSG's opening capacity of $25 million a day [5], one fund holding all of Sky's roughly $1 billion allocation [1] would need 40 days to take the money in, or 40 days to hand it back [1]. Round-the-clock processing does not change that count. A 24/7 window helps a small holder who wants out on a Sunday. For a reserve this size, the daily ceiling sets the pace.
The 40 days assumes a single winner. Multiple issuers submitted tokenized funds, credit products and other instruments [11], and Sky wanted a diversified, liquid portfolio that would not rely solely on crypto-native collateral [12]. If OUSG got half the pool, it would clear at the starting cap in 20 days [3]. The cap was also slated to rise [5].
What sits under the wrapper matters as much as the cap. A large share of OUSG's holdings sat in BUIDL [7]. The partners said they were exploring direct conversions so Sky could move between the two products if both were approved [8]. That condition suggests BUIDL could be approved on its own merits, and in both outcomes BlackRock's fund holds the Treasuries. Ondo is competing for the layer on top. That layer offers daily interest accrual, rebasing and non-rebasing versions on Ethereum and Solana [6], and fees and minimums that Ondo described as lower than some purely institutional vehicles [9]. In a post dated September 23, 2024, Ondo wrote that "OUSG is the first peer-to-peer transferable fund onchain" [14].
According to Crowdfund Insider, Securitize chief executive Carlos Domingo said the joint application showed how a crypto-native issuer and traditional asset managers could work together, and argued the combination could deliver competitive yield and liquidity for Sky [15]. Ondo founder Nathan Allman presented OUSG as a long-term partner product for sUSDS, not a one-off allocation, the report said [16]. Ondo cited hundreds of millions of dollars already deployed across OUSG, USDY and Flux Finance [10].
I think the daily cap is the term an allocator should test first. It binds when a reserve needs to move, and Ondo has already said it will change. The counter-case is that Sky would hold a slice of the pool, and a working BUIDL conversion would give it a second route out of OUSG. Either would shrink the 40 days to a figure that matters less. Any allocation depended on Sky governance [13], and the report does not say how the vote went.
What to watch
- Sky governance's allocation vote, and how the roughly $1 billion is split between OUSG, BUIDL and the other submissions.
- The size and timing of the promised increase to OUSG's $25 million daily subscription and redemption capacity.
- Whether direct OUSG-BUIDL conversions launch, and whether they count against Ondo's daily limit.