Wellington Asset Management Partners with Standard Chartered and Ondo Finance to Launch Moodys Aa Rated OnChain Fund
Wellington Management, an asset management company, recently announced a collaboration with Libeara to enter the RWA space. It is understood that both parties will work together to invest in tokenized ultra-short-term government bonds, with the company selecting Ondo Finance’s technology to support 24-hour settlement and redemption for this financial product.
Libeara is a tokenization platform for real-world assets (RWA) backed by Standard Chartered Bank, and the project of this collaboration is named the Delta Wellington Ultra Short Treasury On-Chain Fund. Aaron Gwak, founder and CEO of Libeara, stated that this fund is modeled after the SGD Delta Fund, becoming the first tokenized fund to receive a Moody’s Aa rating. Gwak also emphasized how tokenization changes asset liquidity, providing a completely new investment experience for traditional investors. For example, using tokenized funds as collateral can enhance asset flexibility through blockchain and smart contracts, enabling the automatic execution of complex processes such as collateral management and ensuring ownership transfer when necessary.
Wellington Management, one of the largest independent asset management companies globally with over $1 trillion in assets under management, has partnered with Ondo to create 24-hour liquidity. Wellington Management chose the technology provided by Ondo Finance to support intraday redemptions, and Ondo Finance’s 24/7 redemption technology will allow investors to exit positions when needed. The Delta Wellington Ultra Short Treasury On-Chain Fund has received a Moody’s Aa rating, marking an important milestone for 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 change the risk profile of traditional financial assets. The 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, top-tier investment solutions.” It is understood that the Delta Wellington Ultra Short Treasury On-Chain Fund has received enthusiastic responses from the Web3 community, with interest expressed by stablecoin issuers, exchanges, and decentralized autonomous organizations (DAOs). Mountain Protocol, Drift, and Ondo Finance have already indicated their interest in this fully on-chain dollar vault solution.
