Ondo Finance (ONDO) Expands Tokenized RWA Market Share with $2.5 Billion TVL Growth

Ondo Finance has achieved $2.52 billion in TVL, with 404% year-over-year growth and 31% monthly growth in early 2026 according to reports. The platform tokenizes institutional-grade assets like U.S. Treasuries and equities, offering products such as USDY and OUSG to bridge traditional finance and blockchain as detailed. Ondo's expansion into tokenized equities has driven $963 million in market value for the sector as of January 2026, a 2,900% increase since 2025 according to Coindesk.

Ondo Finance continues to expand its footprint in the tokenized real-world assets (RWA) sector, with total value locked (TVL) reaching $2.52 billion in early 2026 according to reports. This represents a 404% year-over-year and a 31% monthly increase in TVL. The platform supports institutional-grade access to U.S. Treasuries and equities through products like USDY and OUSG, which are backed by traditional securities and offer 24/7 trading on multiple blockchains as explained.

The growth of tokenized equities is another key area of focus for Ondo. As of January 2026, the market for tokenized equities has surged to nearly $963 million in value, representing a 2,900% year-on-year increase from $32 million according to Coindesk. This growth is largely attributed to improved settlement efficiency and broader market access through blockchain technology, particularly through platforms like Ondo Global Markets, which tokenizes over 200 U.S. stocks and ETFs as described.

Ondo has secured institutional validation from major players in traditional finance. Partnerships with BlackRock and J.P. Morgan underscore the platform's role in bridging the gap between traditional and decentralized finance according to reports. These collaborations have enabled features like fractional ownership, instant settlement, and global liquidity, reinforcing Ondo's hybrid model of blockchain efficiency and traditional compliance according to data.

What Is the Current Market Share and Growth of Tokenized Equities Through Ondo?

Ondo's tokenized equities have driven significant growth in the broader sector. The platform reports $500 million in TVL from tokenized equities, which accounts for half of the market share in the space according to reports. This is supported by a 24/7 trading model that allows investors to mint and redeem tokenized assets directly against traditional exchanges like NASDAQ and NYSE as explained.

The rise of tokenized equities reflects a broader shift in how traditional financial instruments are accessed and traded. Tokenization enables on-chain trading without intermediaries, reducing settlement times and offering global liquidity to international investors as detailed. As of early 2026, Ondo has reported over $7 billion in cumulative trading volume since launching Ondo Global Markets in September 2025 according to reports.

Despite this growth, there is a notable disconnect between platform activity and token price performance. The ONDO token has experienced a 12.9% monthly decline in early 2026, despite a 31% monthly increase in TVL according to reports. This divergence highlights the challenges in aligning token demand with protocol growth and underscores the need for stronger utility or governance incentives for the ONDO token according to analysis.

How Does Ondo Finance Maintain Compliance While Expanding into DeFi?

Ondo Finance operates on a compliance-first model, ensuring that tokenization remains within the bounds of traditional financial regulations. Assets are backed by regulated securities, and minting and redemption processes include KYC/AML checks and regulated custody arrangements as explained.

The platform's compliance approach includes partnerships with major institutional players and adherence to regulatory frameworks like the SEC's 2025 investigation closure and MiCA compliance according to reports. This helps mitigate regulatory risks and builds trust with institutional investors who are increasingly adopting blockchain technology for asset management according to data.

Ondo's governance model is centered around the ONDO token, which gives holders control over protocol governance, emissions, and treasury deployment according to analysis. This ensures that the platform's evolution aligns with investor interests while maintaining institutional-grade standards.

The platform also supports third-party RWA issuance through Ondo Nexus, connecting institutional-grade assets with DeFi protocols and further expanding its reach while preserving regulatory safeguards as detailed.

The tokenized RWA market is expected to grow substantially, with Ondo positioned to capture a significant share of the $16 trillion market by 2030 according to reports. However, ongoing challenges like token valuation, regulatory clarity, and velocity risk in liquidity shifts must be carefully managed to sustain long-term growth according to analysis.