1inch and Ondo Finance Partner to Enhance Access to Tokenized Assets Globally

1inch partners with Ondo Finance to provide global users with access to tokenized US stocks and ETFs. The collaboration utilizes Fusion technology for enhanced liquidity and efficient swaps. This partnership broadens financial access and influences market liquidity and DeFi engagement globally, excluding US, UK, and EEA due to regulatory constraints.

1inch, a prominent DeFi liquidity aggregator, has formed a strategic partnership with Ondo Finance to provide global users with access to tokenized versions of U.S.-listed stocks and ETFs. The collaboration leverages 1inch's Fusion technology to enhance liquidity and facilitate efficient swaps, thereby broadening financial access and influencing market liquidity and DeFi engagement worldwide. However, due to regulatory constraints, the offering remains unavailable to residents of the United States, the United Kingdom, and the European Economic Area.

Ondo Finance, an Ethereum DeFi project focused on tokenization, has rolled out its Ondo Global Finance platform, which includes tokenized versions of over 100 U.S.-listed stocks and ETFs. The platform is currently accessible to non-U.S. investors, with plans to expand the selection to more than 1,000 assets by the end of the year. The tokens are fully backed and secured by U.S. stocks and ETFs held at one or more U.S.-registered broker-dealers and cash in transit.

The integration of 1inch Fusion technology allows for seamless liquidity aggregation and optimized swap routing, making it easier for users to trade tokenized assets directly from their wallets. Trust Wallet, which serves over 200 million users worldwide, has integrated Ondo's tokenized assets, enabling retail access to equities without the need for traditional brokerage accounts. Users can hold and swap tokenized stocks directly in their wallets, with liquidity supported through the 1inch Swap API.

Trading on the Ondo Global Markets platform is initially limited to U.S. market hours, though peer-to-peer transfers are available on-chain at any time. Pricing data is delivered through Chainlink oracles, while LayerZero enables cross-chain transfers, with future support planned for BNB Chain and Solana.

The collaboration between 1inch and Ondo Finance represents a significant step forward in the tokenization of traditional financial assets. It addresses regulatory, liquidity, and interoperability hurdles that have limited previous attempts at tokenized securities, making it easier for global investors to gain exposure to major U.S. companies and ETFs.

References:
[1] https://finance.yahoo.com/news/defi-protocol-ondo-finance-puts-191807701.html
[2] https://blockworks.co/news/tokenized-stocks-on-ethereum
[3] https://en.coinotag.com/trust-wallet-could-bring-tokenized-us-stocks-and-etfs-to-ethereum-and-solana-with-ondo-finance-1inch/