Blockchain Tokenization Competition Heats Up: Ondo's Strategic Counter to Nasdaq and Its Impact on DeFi and Institutional Adoption

The financial infrastructure landscape is undergoing a seismic shift as blockchain technology redefines asset tokenization. At the forefront of this transformation is Ondo Finance, a platform that has emerged as both a challenger and collaborator in the race to tokenize real-world assets (RWAs). With Nasdaq's recent foray into tokenized equities and exchange-traded products (ETPs), Ondo's strategic responses—ranging from regulatory advocacy to product innovation—have positioned it as a pivotal player in shaping the future of institutional-grade DeFi.

!image

Nasdaq's Tokenization Ambitions and Ondo's Regulatory Pushback

Nasdaq's proposal to facilitate tokenized equity trading represents a bold step toward modernizing U.S. markets. However, Ondo Finance has raised critical concerns about the lack of transparency in the Depository Trust Company's (DTC) settlement framework for tokenized assets. The firm has urged the SEC to delay Nasdaq's rule, according to a bsc.news report, until DTC discloses its operational blueprint, arguing that without such clarity, regulators and market participants cannot assess the system's fairness or functionality. Ondo's stance highlights a broader tension: while Nasdaq seeks to leverage its infrastructure dominance, Ondo emphasizes the need for open collaboration and equitable access to prevent a fragmented, winner-takes-all market.

This regulatory pushback is not merely defensive. Ondo has simultaneously advanced its own infrastructure by acquiring Oasis Pro, an SEC-registered broker-dealer, which provides a robust regulatory framework for tokenized securities in the U.S. This move enables Ondo to offer compliant, institutional-grade products, such as its Ondo Global Markets platform, which already provides non-U.S. investors access to over 100 tokenized U.S. stocks and ETFs. By aligning with Nasdaq's vision while advocating for systemic transparency, Ondo is positioning itself as a bridge between traditional finance and decentralized ecosystems.

Institutional Adoption and DeFi Integration: A Dual-Track Strategy

Ondo's success in 2025 is underscored by its dual focus on institutional adoption and DeFi integration. The platform's Total Value Locked (TVL) has surged from $192 million in January 2024 to $1.39 billion by September 2025, driven by products like OUSG (tokenized U.S. Treasuries) and USDY (a yield-bearing stablecoin). These instruments, which manage $419 million and $589 million in TVL respectively, have attracted institutional investors seeking liquidity and yield in a traditionally illiquid asset class.

Institutional confidence is further evidenced by partnerships with JPMorgan, Ripple, and WisdomTree. A cross-chain DvP pilot with JPMorgan and Chainlink validated Ondo's technology for institutional use, while its collaboration with Ripple to tokenize U.S. Treasuries on the XRP Ledger aims to enhance settlement efficiency. WisdomTree's $131 billion in assets under management (AUM) joining Ondo's Global Markets Alliance signals growing acceptance of tokenized RWAs among traditional asset managers.

On the DeFi front, Ondo has expanded interoperability through integrations with LayerZero and STBL, enabling cross-chain functionality and stablecoin collateralization. Grayscale's inclusion of the ONDO token in its DeFi fund and Coinbase's listing of Ondo's tokenized assets on its Base app further cement its role in democratizing access to institutional-grade products.

Implications for the Future of Tokenized Finance

Ondo's strategic responses to Nasdaq and its aggressive expansion into institutional and DeFi markets have broader implications. First, its advocacy for regulatory clarity could influence the SEC's approach to tokenized securities, potentially fostering a more inclusive framework. Second, by tokenizing $1.7 billion in assets across multiple blockchains, Ondo is demonstrating that RWAs can coexist with DeFi protocols, addressing scalability and compliance challenges.

However, challenges remain. Nasdaq's infrastructure dominance and the SEC's regulatory stance will determine whether tokenization becomes a decentralized or centralized paradigm. Ondo's ability to maintain its regulatory edge while scaling partnerships will be critical.

Conclusion

As blockchain reshapes financial infrastructure, Ondo Finance's strategic duality—challenging incumbents while embracing institutional collaboration—positions it as a linchpin in the tokenization revolution. Its success hinges on balancing regulatory advocacy with product innovation, ensuring that DeFi and traditional finance evolve in tandem. For investors, Ondo's trajectory offers a compelling case study in how strategic agility can redefine market dynamics in the age of tokenized assets.