Ondo Finance is set to revolutionize the tokenization of real-world assets (RWAs) with the announcement of Ondo Chain, a new institution-focused layer-1 blockchain. The announcement was made on February 6, 2025, during Ondo’s inaugural New York summit, marking a significant milestone in the firm’s mission to bridge traditional finance and the blockchain world.
Ondo Chain is designed specifically for Wall Street firms and aims to create a secure, efficient environment for tokenizing RWAs, such as real estate, commodities, and private equity. The new blockchain will cater to a wide range of institutional use cases, including prime brokerage, cross-collateralized margin for RWAs, staking tokenized assets, and wealth management. The firm’s ability to offer a permissioned model for validators ensures enhanced investor protections, making it a suitable platform for institutions that require best execution guarantees.
The development of Ondo Chain will be guided by prominent financial institutions such as BlackRock, PayPal, and Morgan Stanley, as well as newcomers like Franklin Templeton, WisdomTree, Google Cloud, ABN Amro, Aon, and McKinsey. These strategic alliances will play a crucial role in shaping the platform’s capabilities, particularly in terms of compliance and security.
A notable aspect of Ondo’s strategy is the creation of a “strategic reserve” with tokens it holds, including the native Ondo (ONDO) token. This move, which was highlighted by Chase Herro of the Trump family’s World Liberty Financial (WLF), is seen as an effort to further stabilize the ecosystem and encourage confidence among institutional participants. WLF recently acquired a significant amount of ONDO tokens, adding to its growing portfolio of over $35 million in various cryptocurrencies.
Although the exact launch date for Ondo Chain remains undisclosed, the platform’s focus on decentralized participation—allowing anyone to issue tokens and develop applications—signals a promising future for blockchain adoption in the financial industry.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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