Wellington Management, an asset management company, recently announced a partnership with Libeara to invest in the realm of Real World Assets (RWA). It is understood that the two parties will collaborate on tokenized ultra-short-term treasury bonds, with the company opting for Ondo Finance’s technology to support the product’s ability to complete settlements and redemptions within 24 hours.
Libeara, a tokenization platform for real-world assets backed by Standard Chartered Bank, has named this collaborative project the Delta Wellington Ultra Short Treasury On-Chain Fund. Aaron Gwak, the founder and CEO of Libeara, stated that the fund is modeled after the SGD Delta Fund, making it the first tokenized fund to receive a Moody’s Aa rating. Gwak also emphasized how tokenization transforms asset liquidity, offering traditional investors an entirely new investment experience. For example, using tokenized funds as collateral, the flexibility of assets can be enhanced through blockchain and smart contracts, allowing for the automatic execution of complex processes such as collateral management while ensuring ownership transfers when necessary.
Wellington Management, one of the largest independent asset management firms globally, has assets under management exceeding $1 trillion. Wellington Management has chosen Ondo Finance’s technology to support intraday redemptions, and Ondo Finance’s 24/7 redemption technology will enable investors to exit positions when necessary. The Delta Wellington Ultra Short Treasury On-Chain Fund has received a Moody’s Aa rating, marking an important milestone in the mainstream acceptance of tokenized assets. The Aa rating not only verifies the safety and stability of the fund’s structure but also highlights that the tokenization process does not fundamentally alter the risk profile of traditional financial assets. This tokenized fund is expected to launch on Arbitrum, Avalanche, and Solana.
Delta Wellington may become a new source of yield for stablecoins, with several protocols expressing interest. Mark Garabedian, Director of Digital Assets and Tokenization at Wellington, stated, “Tokenization represents a new frontier in asset management, and we are excited to collaborate with Libeara, FundBridge, and Standard Chartered Bank to advance this pioneering initiative.” He added, “By leveraging blockchain technology for asset management, FundBridge can provide clients with greater access and operational efficiency, aligning with Wellington’s commitment to delivering innovative, best-in-class investment solutions.” It is understood that the Delta Wellington Ultra Short Treasury On-Chain Fund has been warmly received by the Web3 community, with stablecoin issuers, exchanges, and decentralized autonomous organizations (DAOs) all expressing interest. Mountain Protocol, Drift, and Ondo Finance have already indicated their interest in this fully on-chain dollar vault solution.