Ondo Finance Forms Global Markets Alliance to Boost Tokenized Asset Adoption

Ondo Finance, a decentralized finance platform, has announced the formation of the Global Markets Alliance, a strategic partnership with eight prominent cryptocurrency wallets, custodians, and exchanges. This alliance aims to accelerate the adoption of onchain financial assets and establish standards for the interoperability of tokenized stocks. The alliance includes notable members such as the Solana Foundation, Bitget Wallet, Jupiter Exchange, Trust Wallet, Rainbow, BitGo, Fireblocks, 1inch, and Alpaca. Ondo Finance's initiative seeks to bring capital markets onchain, fostering a more integrated and efficient financial ecosystem.

The Global Markets Alliance is part of Ondo Finance's broader focus on real-world asset tokenization. The platform recently launched a layer-1 blockchain tailored for institutional onchain assets, offering tokenized treasury products backed by US government debt. Users have committed nearly $1.4 billion to the Ondo ecosystem, reflecting the growing interest and investment in tokenized assets. Ondo’s total value locked (TVL) has more than doubled over the past year, reaching nearly $1.4 billion as of June.

The market for tokenized real-world assets (RWAs) has seen significant growth, driven by a more favorable regulatory environment in the United States and rising global demand for US financial products. This growth has been led by tokenized private credit and US Treasury bonds, indicating a strong trend towards the digitization of traditional financial assets.

Several crypto companies are expanding into the RWA market, seeking to bring traditional financial assets onchain. For instance, crypto payment platform Alchemy Pay has partnered with tokenization firm Backed to launch 55 tokenized US exchange-traded funds, making these assets available to jurisdictions with limited access to US financial markets. Additionally, retail trading platform Robinhood is reportedly developing tokenized stock offerings for European investors, with plans to tokenize private credit as well.

The formation of the Global Markets Alliance by Ondo Finance, along with the participation of key players like the Solana Foundation and Bitget Wallet, signifies a significant step towards the mainstream adoption of tokenized assets. This alliance not only aims to establish industry standards but also to create a more interconnected and efficient financial system. As more companies join the initiative, the potential for innovation and growth in the tokenized asset market continues to expand, paving the way for a future where traditional financial assets are seamlessly integrated with blockchain technology.