Institutional Drive Toward Tokenized Treasuries Faces Opposition from ECB's Risk Alerts

Ondo Finance has revealed a $25 million strategic investment in Figure Technology Solutions' $YLDS stablecoin, aiming to enhance its flagship tokenized offering, the Short-Term US Treasuries Fund (OUSG). This initiative is intended to broaden and reinforce the yield sources supporting OUSG, which already holds assets managed by a range of firms. The $YLDS stablecoin, launched by Figure Certificate Company, is a registered security, backed by the same assets as GENIUS Act-compliant stablecoins, and distributes interest to its holders.

This investment comes on the heels of Figure’s recent IPO and is in line with its reported $19 billion in real-world asset lending conducted on the Provenance Blockchain. Michael Tannenbaum, CEO of Figure Technology Solutions, stated that the collaboration "further cements the $YLDS stablecoin’s leadership in the tokenized real-world asset sector," while Ian De Bode, President of

Finance, described the investment as a move to "reinforce OUSG’s status as the premier on-chain solution for institutional investors."

In a broader context, the stablecoin sector has expanded to a market value of $280 billion,

. Nevertheless, the European Central Bank (ECB) has voiced concerns about potential systemic threats, cautioning that stablecoins might undermine financial stability by diverting retail deposits from conventional banks. , could force rapid sales of reserve assets, possibly unsettling U.S. Treasury markets and triggering a wider financial crisis.

Figure’s latest financial results further reinforce its standing in the industry. The company’s third-quarter 2025 earnings surpassed analyst forecasts, posting $156.37 million in revenue and adjusted earnings per share of $0.34. Mizuho analysts increased their price target for Figure from $47 to $56, citing robust expansion in its consumer lending platform.

The partnership between Ondo and Figure highlights the rising institutional appetite for tokenized financial solutions. Both firms are committed to advancing the adoption of blockchain-powered financial instruments, especially within the real-world asset (RWA) sector.

, as central banks and regulators strive to balance innovation with the need to manage systemic risks.