Ondo Finance Launches Ondo Chain, a Layer 1 Blockchain for Institutional Adoption of Real-World Assets

Ondo Finance has launched Ondo Chain, a new layer 1 blockchain designed to accelerate institutional adoption of real-world assets (RWAs). The blockchain is part of Ondo Finance’s push to bring capital markets on-chain and is purpose-built for institutions.

Addressing Current Challenges in Institutional Tokenization

The current challenges in adopting tokenized securities include incompatibility with decentralized finance (DeFi), cross-chain liquidity fragmentation, and high transaction fees. Additionally, regulatory concerns, bridging issues, and network security risks also remain key hurdles. Ondo Chain aims to overcome these challenges and provide a solution for institutions to adopt tokenized securities.

Features and Capabilities of Ondo Chain

Ondo Chain combines the benefits of both public and permissioned chains, offering openness, enhanced compliance, and security features. Some of the key features built into Ondo Chain include:

  • Institutional-grade network security
  • Permissioned validators
  • Native omnichain messaging
  • Proof of reserves
  • Native support for RWAs in DeFi, allowing for dApps that offer access to borrowing, lending, and staking with real-world assets

These features will provide infrastructure purpose-built for the tokenization of RWAs while catering to the comprehensive needs of both traditional and crypto-native investors.

Through these features, Ondo Chain will provide infrastructure purpose built for the tokenization of RWAs while catering to the comprehensive needs of both traditional and crypto-native investors. By combining the strengths of public and permissioned blockchains, Ondo Chain aims to foster a thriving ecosystem where the potential of tokenized RWAs is fully realized.

Market Growth and Opportunities

According to data from RWA.xyz, the global market for tokenized real-world assets has grown steadily over the past year, with major players such as BlackRock contributing to this expansion. The total value of tokenized assets on-chain has reached over $17 billion, with Ondo’s $650 million market share part of the $3.5 billion tokenized U.S. Treasuries market.

Ondo Finance aims to create a cost-effective experience for investors, encourage broader financial institution participation, and support further development across crypto wallets, protocols, and applications. The goal is to deliver a blockchain network that bridges decentralized finance with traditional finance.

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