Key Points:

• Ondo Finance has announced the launch of its new layer-1 blockchain, called Ondo Chain, which targets tokenized real-world assets specifically for institutional finance.
• The blockchain is designed to satisfy compliance requirements while maintaining the ease of access that public chains such as Ethereum offer.
• This move positions Ondo as the second-largest protocol for tokenized Treasury offerings, previously unveiling a tokenization platform.

---

New York, NY — Ondo Finance, known as the second-largest issuer of tokenized Treasuries, announced their plans to integrate a layer-1 blockchain aimed at merging traditional capital markets with decentralized finance. This was revealed during their first Ondo Summit.

According to the company, the Ondo Chain is developed to meet institutional compliance standards while offering transparency and accessibility typical of public blockchains. The blockchain will utilize permissioned validators to verify transactions and secure financial data, including asset prices and token backing. It will also facilitate staking of tokenized assets and enable interoperability between blockchains.

“Financial markets are overdue for an upgrade,” CEO Nathan Allman stated. “We’re creating an ecosystem that bridges the best of traditional finance with blockchain technology.”

The native token of the ecosystem, ONDO, experienced unstable price movements post-announcement, first dropping 1.5% before rising 3.5%. Just after this announcement, World Liberty Financial, a decentralized finance protocol backed by Donald Trump, invested $470,000 in ONDO tokens, as recorded in blockchain transactions.

Ian De Bode, Chief Strategy Officer at Ondo, added during the Ondo Summit presentation, “We really set out to build something that could combine the best of both traditional finance and all the benefits of DeFi with its open access and innovation.”

This announcement follows Ondo’s prior introduction of a tokenization platform that is integrating stocks, bonds, and funds with blockchain technology.

According to Allman, achieving widespread adoption for tokenized real-world assets may require two to three years under a new administration.

Tokenization is gaining momentum globally, with institutions and even governments exploring the process to enhance operational efficiency like quicker settlements and expanding investor access. Experts predict that the market for tokenized real-world assets could reach trillions of dollars in the coming decade.

Influential figures in finance are recognizing tokenized RWAs as the next big thing in financial innovation, with BlackRock’s CEO Larry Fink suggesting future trading of stocks and bonds on blockchain, and Robinhood’s Vlad Tenev advocating for making tokenized investments accessible to retail investors.