In 2023 Mastercard unveiled its Multi-Token Network (MTN) for tokenized deposits and tokenized assets. It acts as a blockchain settlement network, integrating public and private blockchains to create a bank supported settlement infrastructure. Now real world asset (RWA) tokenization firm, Ondo Finance, is enabling its OUSG money market fund (MMF) as an investment for members of the MTN network.

OUSG mainly uses BlackRock’s BUIDL money market fund as collateral for OUSG, a fund that’s available to accredited investors. It recently expanded its collateral by adding Franklin Templeton’s FOBXX, as well as tokenized funds from Wellington Management and WisdomTree.

A key benefit of tokenization is the ability to transfer assets around the world 24/7. But money market funds don’t work 24/7. They usually have a narrow daily time window for redemption.

OUSG is different, it supports 24/7 investment and redemption (within limits).

However, the seller can only receive the USDC stablecoin for instant redemptions. That’s where Mastercard’s MTN comes in. The OUSG owner can now redeem their MMF and be paid out via a bank using MTN. Last year JP Morgan said it was integrating its Kinexys Digital Payments (formerly JPM Coin), but MTN also enables settlement with traditional banking rails.

Ondo is embracing the 24/7 ethos. Not only does it support instant redemption of OUSG, but it recently launched its Ondo Nexus offering. This enables anyone who owns BUIDL, FOBXX or the other MMF tokens to redeem them 24/7 by selling them to Ondo, which can use them as collateral for OUSG.