- Ondo Finance launches over 100 tokenized U.S. stocks and ETFs on the Ethereum blockchain.
- Global investors gain 24/7 access to mint and redeem tokenized stocks with liquidity.
- Ondo plans to expand to 1,000 assets and add support for BNB Chain and Solana blockchain.
Ondo Finance, in collaboration with the Ondo Foundation, has launched a platform called Ondo Global Market to launch tokenized versions of over 100 U.S. stocks and exchange-traded funds (ETFs) on the blockchain. Currently listed on Ethereum, this will provide global investors with a unique opportunity to trade these assets, offering 24/7 on-chain access.
Bridging Traditional Markets with Blockchain
Ondo Global Markets will offer simple access to conventional financial products by tokenizing US stocks and ETFs, allowing them to be traded on the blockchain. Initially introduced in Ethereum, it will soon be expanded to other blockchains such as Solana and BNB Chain. Moreover, the expansion is projected to be completed by year-end, improving the accessibility and liquidity of tokenized securities.
This new platform enables investors in Asia-Pacific, Europe, Africa, and Latin America to mint and redeem tokenized assets 24/7 during trading hours. However, it is not available to U.S. and U.K. retail and institutional investors.
Ondo’s solution is unique because it offers liquidity from traditional exchanges, making it easier to transfer tokenized equities across wallets, exchanges, and decentralized finance (DeFi) protocols.
Furthermore, Ondo’s model aims to democratize access by introducing investors to the tokenized securities market without limiting them to siloed platforms. These tokenized assets are backed by U.S. securities held by registered broker-dealers, providing transparency and security for participants.
Global Expansion Plans and Future Prospects
The platform aims to increase the number of tokenized assets to 1,000 securities by the end of 2025, which will include stocks from companies such as Apple, Tesla, and Nvidia. By providing access to major US stocks and ETFs, Ondo will help enhance the market for tokenised real-world assets (RWAs).
The platform is built on LayerZero, which offers interoperability between blockchain networks, enabling Ondo to provide tokenized stocks and ETFs on multiple chains, making them even more accessible to global investors. By collaborating with major infrastructure providers such as BitGo, Ledger, and Chainlink, Ondo is confident that its platform will provide the essential tools for secure transactions and trusted asset pricing.
This shift towards tokenization of traditional financial assets occurs at a time when RWAs are being rapidly adopted in the blockchain industry. Projects like Ondo are leading the trend by allowing investors to tap into the liquidity of international markets without the restrictions usually imposed by traditional finance. Ondo’s method is similar to how stablecoins have already achieved success in bringing the US dollar to the blockchain, making it more accessible and functional on decentralized platforms.
Related: Ondo Acquires Oasis Pro to Expand U.S. Tokenized Securities Market
The Role of Partnerships and Institutional Support
A key factor in Ondo’s success is its strategic alliances with leading infrastructure providers. By collaborating with 1inch, the platform had incorporated Ondo’s assets into its Swap API, offering jurisdiction-aware access to tokenized equities. This partnership aims to boost Ondo’s liquidity and facilitate an efficient on-chain management of tokenized assets.
Further, the integration with Block Street, a chain-agnostic liquidity layer for tokenized stocks, has provided institutional-grade liquidity rails for tokenized assets, allowing borrowing, shorting, and hedging at scale in the DeFi ecosystem. These integrations play a crucial role in ensuring that Ondo Global Markets can satisfy the increasing demand for tokenized securities while also enabling a seamless transition from traditional financial systems to blockchain-based solutions.
