Trust & Security
When dealing with money, trust and security are always important. In crypto, these issues are even more top of mind. We therefore wanted to highlight a few of the many ways we are committed to maintaining your trust and the security of your funds.
Even within TradFi, setting up and operating any given fund involves many parties, such as asset managers, custodians, fund administrators, counterparties, lawyers, and more. And that list only gets bigger in on-chain finance, particularly when connecting on-chain capital to off-chain assets. Simply put, partners matter.
At Ondo, we work with only the most reputable, well-established partners across all functions. For example, take our fund, OUSG, which invests in an exchange-traded fund (ETF) backed by short-term US Treasuries. The ETF itself is managed by BlackRock, the largest asset manager in the world, with $10 trillion under management (roughly one quarter of all the money in circulation today). The Treasuries themselves are custodied at one of Blackrock's preferred custodians: BNY Mellon, Citi, JP Morgan, and State Street. And of course, US Treasuries are backed by the full faith and credit of the United States government, which is largely considered to be one of the lowest-risk assets in the world.
The USDC you invest is exchanged for USD by Coinbase, one of the leading crypto asset custodians. Once the fund buys shares in the ETF, those shares are custodied at the DTC (Depository Trust Company) via our prime broker Clear Street.
The details for our other funds differ but the principle is the same: high quality institutional partners, always.
Transparency & Disclosure
We believe the standards for transparency and disclosure in on-chain finance should meet or exceed those in TradFi. Whenever possible, we try to be transparent with our product and protocol details. As an example, if you visit the product page for any of our funds, you will find detailed information on all relevant dimensions, including the strategy employed, the underlying portfolio composition, current portfolio pricing, historical performance and risk, as well as the results of periodic fund audits. On the technical side, we will be transparent about the audit status of any material code. Finally, Ondo and its related entities regularly undergo financial and information security audits, which are shared with authorized requesting parties.
Legal & Regulatory Compliance
Ondo takes legal and regulatory compliance seriously. We take a very conservative approach to risk in general, and we put in tremendous effort to design our products in a compliant way, including consulting with multiple legal, tax, and regulatory experts, resulting in a conservative regulatory posture.