Fidelity to Power Infra for Ondo’s $2.7B Tokenized Assets in Major tie up

In a major boost for security of tokenized assets, Ondo Finance has tapped the technology arm of Fidelity to add a verification layer for its tokenized-asset flows.

Ondo has become the first production integrator of the Decentralized Verifier Network (DVN) launched by Fidelity Center for Applied Technology.

This is a move that underscores growing institutional interest of investors like Fidelity in real-world asset tokenization. It also comes as RWA market cap surpasses $25 Billion with 34% increase in RWA holders.

Also Read: Monad Acquires Developer Tooling Project Ponder

What Ondo-Fidelity Are Partnering it For

Ondo’s tokenized assets such as treasuries and stocks don’t live on just one blockchain. They move between Ethereum, Base, Arbitrum, etc., using the LayerZero messaging system.

But this is where risk enters. Cross-chain security remains a critical concern for tokenized assets, where bridge failures can lead to systemic losses for holders.

To solve it, Ondo is using Fidelity’s tech arm Fidelity Center for Applied Technology (FCAT) developed institutional-grade Decentralized Verifier Network (DVN) on the LayerZero protocol. As part of the partnership, Ondo Finance has become its first production integrator.

The DVN can independently verify cross-chain messages that includes data and value transfers that move between blockchains, serving as a decentralized set of verifiers. It will be reducing reliance on a single validator or messaging protocol and aiming to lower the systemic risk associated with bridging tokenized assets.

With this, Fidelity’s tech will be adding an additional layer of validation to crosschain transactions of Ondo’s assets. According to FCAT, the network is already live across major ecosystems including Ethereum, Arbitrum, Base, Optimism, Polygon, Avalanche, and Solana.

Also Read: Cash App Rolls Out Zero-Fee Bitcoin Payments

Ondo’s Moves in Tokenization

Dedicated verifier network run by a recognized institutional research arm like FCAT adds a layer of third-party validation and institutional credibility.

Now, Ondo will route certain cross-chain validations through Fidelity’s DVN, adding an institutional-grade verification layer to the Ondo Bridge. This is likely to increase its institutuional appeal to traditional asset managers, custodians, and treasury desks exploring on-chain settlement and yield strategies

The Fidelity-backed deployment arrives hot on the heels of Ondo’s recent integration with Chainlink, with which it is making tokenized equities usable within DeFi markets.

Through Chainlink’s price feeds and cross-chain infrastructure, Ondo’s tokenized stocks and ETF products gain reliable pricing and data guarantees. That will bbe allowing them to be used as collateral and composable building blocks across DeFi protocols.

Thus, Ondo’s Chainlink and FCAT integrations address two foundational requirements for institutional-grade tokenization. These are price integrity for DeFi usage and secure cross-chain settlement for asset movement.