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"Ondo Chain Launches: Bridging TradFi and DeFi with Compliance-Focused Blockchain"

Coin WorldThursday, Feb 6, 2025 3:48 pm ET
1min read

Ondo Finance, a leading blockchain technology company, has launched its institutional Layer 1 blockchain, Ondo Chain, marking a significant milestone in the tokenization of real-world assets (RWAs). The new blockchain aims to bridge traditional financial markets with decentralized finance (DeFi) by offering a compliance-focused infrastructure for tokenized securities.

Ondo Chain is designed to address major challenges in tokenized securities, such as high transaction fees, liquidity fragmentation, and regulatory compliance. By combining features of both public and permissioned blockchains, Ondo Chain allows institutions to benefit from public blockchain accessibility while maintaining compliance with financial regulations through permissioned validators.

Several major financial institutions, including Franklin Templeton, Wellington Management, and WisdomTree, are partnering with Ondo Finance to shape the design of Ondo Chain. Nathan Allman, CEO of Ondo Finance, commented on the launch, stating that "Financial markets are overdue for an upgrade. Ondo Chain is designed to meet the highest institutional standards while remaining open for developers and innovators."

Ondo Chain will introduce staking mechanisms for tokenized RWAs, allowing investors to earn yields while securing the network. The blockchain will also support native omnichain bridging, enabling seamless transfers of tokenized assets across multiple networks.

On the same day as the blockchain announcement, World Liberty Financial, a decentralized finance platform backed by Donald Trump and his family, invested $470,000 in ONDO tokens. The firm swapped USDC for 342,000 ONDO tokens through CoW Protocol, marking its second purchase in two months. These tokens were later sent to Coinbase Prime. Alongside ONDO, the firm has also been acquiring TRX and Wrapped Bitcoin (WBTC), signaling further interest in blockchain-based financial markets.

ONDO’s price has experienced fluctuations following the announcement. The token is trading at $1.298, down 3.7% in the past 24 hours as the broader crypto market trends downward. The CoinDesk 20 Index also dropped 3.1%, affecting multiple assets in the sector. Technical analysts are monitoring ONDO’s price levels, with a break above $1.50 potentially leading to further gains, with potential targets at $1.64, $1.94, and $2.10. Invest

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LoinsSinOfPride
02/06
Ondo Chain bridging TradFi and DeFi? Game changer if they pull it off. Liquidity fragmentation is a real pain.
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Snorkx
02/06
ONDO's staking mechanism sounds like a sweet yield play. Gotta keep an eye on that APY.
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Excellent-Win-4625
02/06
ONDO's staking mechanism sounds like a game-changer. Finally, investors can earn yields while securing the network. 🚀
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ImplementEither7716
02/06
$ONDO got my nod for its compliance focus. Finally, a project that thinks about regulators. Smart move for institutions.
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