- Ondo Finance has launched the Ondo Chain
- It combines public blockchain openness, compliance, and security features
- The solution provides multiple opportunities for stocks, bonds, RWAs, and ETFs on-chain
Ondo Finance has launched Ondo Chain which aims to combine public blockchains openness, compliance, and security features and bring institutional-grade financial markets on-chain. Thus Ondo Chain aims to provide a comprehensive and secure ecosystem with multiple features for stocks, bonds, RWAs, and ETFs on-chain.
More About Ondo Chain Goals and Features
Ondo Chain is an L1 blockchain that aims to accelerate the creation and migration of institutional-level financial markets on-chain by providing ready-made broad capabilities to create wallets, protocols, and applications within a seamless and resilient infrastructure with efficient bridges between chains.
Ondo Finance provides an excellent explanation of why creating a standalone blockchain makes sense, especially in the context of global pro-crypto adaptation in the US. First and foremost, Ondo Chain focuses on integrating RWAs and traditional financial networks into an open and developer-friendly public on-chain ecosystem, providing lower cost and latency while providing real-time liquidity.
Ondo Finance CEO Nathan Allman said:
“Ondo Chain is designed to meet the highest institutional standards while remaining open for developers and innovators. It tightly couples on-chain and off-chain infrastructure, reducing cost, enhancing security, and ultimately enabling a better user experience.”
More specifically, key features include:
- Secured by High-Quality RWAs: Validators can stake RWAs and other high-quality liquid assets to secure the network, bridges, and oracles, reducing volatility risk and costs while enabling investors to earn additional yield on their RWAs.
- Enshrined Oracles & Proof of Reserves: Through consensus, validators will automatically verify key off-chain data such as asset prices (via price feeds) and proof of reserves (via custodians or broker-dealers).
- Native Omnichain Messaging & Bridging: The Ondo decentralized verifier network (DVN) and multi-attestation protocols enable seamless cross-chain transactions to both EVM and non-EVM networks. Additionally, third-party DVNs can be used at higher transaction amounts, balancing speed, cost, and safety. Ondo Chain also enables integrations into private, permissioned chains.
- Permissioned Validators: Validators will include institutional asset managers and broker-dealers and will be monitored to prevent front-running and support the best execution, increasing investor protection.
- Open Access & Development: Virtually anyone can issue tokens, develop apps, or act as a user or investor.
- RWA-Focused Ecosystem: Ondo Chain makes RWAs first-class citizens in DeFi, enabling borrowing, lending, staking, and cross-collateralization across traditional and crypto assets.
Their initiative is really fundamental and claims to play the same infrastructural and institutional role as Cardano, but offering a separately designed platform to do so. The initial benefits they aim to bring are cost-effective investor experience, institutional alignment, and a unified ecosystem. Ondo Chain enables such applications:
- Prime Brokerage: Access margin on both RWAs and crypto (including cross-collateralization) from both on-chain and off-chain sources at competitive rates. Buy and sell from broker-dealers obligated to provide best execution, and receive competitive securities lending rates when you loan out your assets.
- Staking and Collateral: Stake Ondo GM assets on the Ondo Chain to enhance security, as well as post as collateral for borrowing and other uses.
- Onchain Wealth Management: Easily build and/or utilize onchain asset management strategies, including automatic 24/7 portfolio rebalancing across crypto, equities, ETFs and fixed income.
- Cross-Chain Token Issuance: Issue tokens that automatically work on multiple chains. Set conditions that must be met for bridges to take place. Manage and administer the assets seamlessly across chains.
- Stablecoin Distribution and Yield: Distribute stablecoins secured by tokenized securities and a variety of fixed-income products across various supported blockchains and easily track minting and yield attribution.
- Bootstrap Other Networks and Protocols: Use restaked Ondo Chain RWAs to secure a new chain or protocol while the native token and network matures.
Conclusion
Potentially, this is a very big development that could help bridge the gap and take on a huge share of liquidity of previously isolated markets.
Ondo Finance seems to be eyeing the initiatives of the new Trump administration and especially the SEC changes, which could bring the various markets even closer together, which would then need a suitable solution developed initially with this focus.
However, the launch has yet to happen and regulations continue to evolve and more time is needed for it all to come to a cohesive point. Be aware and stay tuned.
The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions. Read more
