Ondo Finance introduces Ondo Chain, a Layer 1 blockchain combining institutional-grade security with public chain transparency, supported by financial giants.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Ondo Finance, a decentralized finance (DeFi) platform, has taken a bold step to redefine how institutional-grade financial markets function. According to protocol, the tokenized real-world asset issuer has recently introduced Ondo Chain, a Layer 1 blockchain. This new move is its plan to bridge the gap between traditional finance and blockchain technology.
At its core, Ondo Chain focuses on providing a strong infrastructure that meets the needs of institutional investors. It promises to offer a mix of security and compliance, similar to the permissioned blockchains used by financial institutions.
What sets Ondo apart is its ability to maintain the transparency and openness of public chains like Ethereum. Combining these features, Ondo Finance aims to make financial markets more efficient, secure, and accessible using blockchain technology. This approach also encourages greater participation from the broader blockchain community. Ondo’s vision could help drive positive changes in the financial sector, potentially paving the way for a new generation of financial markets.
To help shape this vision, the project has attracted financial giants, including Franklin Templeton, Wellington Management, and WisdomTree. These partners will offer crucial insights into the platform’s design. Their expertise will ensure the blockchain meets the highest institutional standards while remaining open to developers and innovators. One of the standout features of Ondo Chain is its use of permissioned validators.
Additionally, Ondo Chain will utilize staking tokenized real-world assets to enhance security. By staking assets, users can contribute to the overall safety of the network. This ensures that it remains robust and secure against potential attacks or fraud. Ondo Chain takes a significant step toward interoperability with its native omnichain bridging feature. This would allow for easy transfers of assets between Ondo Chain and other supported networks.
Ondo Finance has also expanded its ecosystem with the launch of Ondo Global Markets (OGM). This platform is designed to bring traditional assets like stocks, bonds, and Exchange Traded Funds (ETFs) to blockchain.
OGM aims to access over 1,000 securities from the NYSE and Nasdaq. It allows investors to trade these assets in a decentralized and secure environment. With a Total Value Locked (TVL) of over $653 million, Ondo Finance is establishing itself as a serious player in the DeFi space.
Several prominent financial companies have also explored tokenized real-world assets and blockchain-based finance. As reported by Coinspeaker, BlackRock’s BUIDL, which reached a $500 million milestone last July, provides blockchain-based access to the US Treasuries with faster settlements.
Similarly, JPMorgan’s Onyx platform allows institutions to use tokenized assets as collateral. Franklin Templeton, Goldman Sachs, and WisdomTree have also created an institutional-grade blockchain-based money market fund.
The growing use of on-chain financial markets, tokenized assets, and blockchain settlements marks a significant shift in traditional finance. Blockchain is becoming an essential part of investment and banking systems. This transformation reshapes how financial assets are traded, settled, and accessed globally.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
