- Ondo Finance launched Ondo Chain, a blockchain built for secure, regulated trading of tokenized RWAs.
- Ondo Chain uses a permissioned system and cross-chain bridges, aiming for institutional compliance.
- The ONDO token saw price swings, and a big buy from a DeFi protocol linked to an investment group.
New York-based Ondo Finance has introduced Ondo Chain, a layer-1 blockchain network designed specifically for tokenized real-world assets (RWAs).
Announced at the Ondo Summit, this initiative aims to bridge institutional finance with blockchain technology, tackling compliance, security, and liquidity challenges faced by traditional markets.
Ondo Chain: Permissioned and Secure
Ondo Chain is tailored to facilitate secure, regulated financial transactions by using a permissioned validator system. This means that unlike public blockchains, where anyone can participate in validating transactions, Ondo Chain only allows approved entities to do so. This helps with meeting regulations.
Unlike traditional public blockchains, which often struggle with cross-chain liquidity fragmentation and compliance concerns, Ondo Chain integrates institutional-grade security measures to ensure seamless transactions. The platform allows staking of tokenized RWAs, providing liquidity and yield-generating opportunities while maintaining regulatory transparency.
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The network also features native cross-chain bridging, meaning you can move assets between Ondo Chain and other blockchains without relying on third-party solutions that can be vulnerable. By implementing validator-based price oracles, Ondo Chain ensures accurate financial data, reducing the risk of manipulation and incorrect valuations.
The goal is to create an efficient and compliant ecosystem where RWAs, such as bonds, stocks, and funds, can be digitally issued and traded without compromising security or investor protections.
ONDO Token Sees Volatility, Then a Big Buy
Following the announcement, ONDO, the native token of the ecosystem, experienced high volatility—initially dropping 1.5% before rebounding 3.5%. Shortly after, blockchain data revealed that World Liberty Financial, a decentralized finance (DeFi) protocol associated with an investment group, acquired $470,000 worth of ONDO tokens.
With tokenization gaining momentum globally, Ondo Finance’s new blockchain seeks to capitalize on institutional interest in blockchain-based securities. Analysts predict the tokenized asset market could reach trillions of dollars over the next decade, with institutions like BlackRock and Robinhood advocating for wider adoption of tokenized securities.
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Ondo Finance’s approach—combining institutional compliance with blockchain transparency—marks a significant step toward mainstream adoption of tokenized assets.
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Source: https://coinedition.com/ondo-finance-targets-institutional-investors-with-new-chain/