Ondo Finance Launches Permissioned Blockchain for Tokenized Real-World Assets

Ondo Finance, a leading platform for tokenized real-world assets, has unveiled a permissioned layer-1 blockchain called Ondo Chain. The network is designed to connect traditional capital markets with decentralized finance, offering a bridge between the two worlds. Ondo Chain combines the security and compliance features of permissioned blockchains with the openness and accessibility of public chains like Ethereum.
The new blockchain will rely on permissioned validators to verify transactions and ensure accurate financial data, such as asset prices and token backing. It will also support staking of tokenized real-world assets and native bridging between blockchains for interoperability. This innovative approach aims to create an ecosystem that bridges the best of traditional finance with blockchain technology.
Ondo Finance is the second-largest issuer of tokenized U.S. Treasuries offerings, with its U.S. Dollar Yield (USDY) and Short-Term US Government Bond (OUSG) tokens having a market capitalization of $385 million and $268 million, respectively. The company's tokenization platform, announced earlier this week, helps place stocks, bonds, and funds on blockchain rails, contributing to the growing tokenized RWA market.
Tokenization, or the creation of digital tokens that represent ownership of traditional assets on a blockchain, is gaining traction globally. Institutions and even governments are increasingly exploring the process in pursuit of operational efficiency gains like speedier settlements and broader investor accessibility. The tokenized RWA market could grow to trillions of dollars through this decade, according to projections from McKinsey, BCG, 21Shares, and Bernstein.
Several influential leaders in the financial world have touted tokenized real-world assets as the next frontier of financial innovation. Larry Fink, CEO of asset management behemoth BlackRock, has said that bonds and stocks will be traded on blockchain rails in the future and urged U.S. regulators and policymakers to create rules for security tokens. Vlad Tenev, co-founder and CEO of digital brokerage Robinhood, has proposed rule changes to unlock tokenized asset investments for retail investors.

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