ONDO Slides Despite USDY Launch on Sei as Token Unlock Weighs on Price

• Ondo Finance deployed USDY on the Sei Network, aiming to expand access to tokenised US Treasuries and leverage Sei's high-performance infrastructure according to reports.
• The move enables USDY to be used as collateral for DeFi products, but has not yet halted the decline in ONDO's price as data shows.
• ONDO has fallen 7.3% in 24 hours to $0.3073, underperforming the broader crypto market, which dropped 1.48% according to trading data.

Approximately 1.94 billion ONDO tokens were unlocked on January 18, 2026, increasing supply and creating potential selling pressure as reported.
Exchange inflows and on-chain activity indicate cautious trading, with some holders waiting for favorable conditions before selling according to market analysis.
This short-term bearish sentiment overshadows the fundamental developments in USDY and Ondo's growing TVL as market indicators show.

The global crypto market has entered a mild risk-off phase, with total capitalisation down 1.48% in 24 hours according to reports.
Altcoins and real-world asset tokens like ONDO often experience sharper pullbacks during such periods as market data indicates.
Ondo Finance's TVL remains robust at $2.698 billion, with USDY accounting for over $1 billion in TVL across multiple chains according to trading data.

What Are the Implications of Tokenized Stock Trading for DeFi?

Ondo Finance's president, Ian de Bode, argues that NYSE and Nasdaq's 24/7 tokenized stock trading plans could bridge the liquidity gap between traditional finance and DeFi according to industry analysis.
Tokenized stocks are gaining traction, with Ondo Global Markets accumulating over $500 million in TVL and $7 billion in trading volume since its September 2025 launch as reported.
This model avoids transfer restrictions and illiquid pools common in other tokenized stock models, enabling instant minting and burning of tokens without slippage according to market sources.

Ondo issues tokenized notes backed by stocks held via clearing brokers, allowing these tokens to be traded on DeFi platforms as detailed.
Aligning traditional exchanges with the 24/7 DeFi model could significantly enhance the tokenized stock market according to industry experts.
Ondo's strategy for 2026 is to expand its global markets platform, adding more assets and blockchain integrations as outlined.

How Is the Tokenized Equities Market Evolving in 2026?

The tokenized equities market reached a valuation of $963.04 million in early 2026, a 2,878% year-over-year increase from $32 million in January 2025 according to market reports.
This growth is driven by regulatory clarity and institutional adoption, with Ondo Global Markets leading the market with $350 million in TVL as data shows.
Kraken's xStocks has also seen growth in AUM, rising ninefold to $186 million within five months according to reports.

Regulatory developments in December 2025, including Ondo Finance receiving approval to offer tokenized U.S. stocks across the EEA and the SEC closing its investigation into Ondo without charges, have encouraged institutional participation according to industry analysis.
As institutional infrastructure continues to mature, the tokenized equities market is expected to grow significantly, potentially reaching $150+ billion by 2030 as forecasted.
Ethereum remains the primary settlement layer, but other chains like Solana are gaining traction due to faster and cheaper transaction environments according to market analysis.

What Are the Risks and Challenges for Ondo Finance?

Despite USDY's deployment on Sei Network, ONDO's price has struggled, influenced by token unlocks and broader market weakness according to market data.
The unlock of 1.94 billion ONDO tokens has increased supply and potential selling pressure, overshadowing fundamental developments as reported.
Exchange inflows and on-chain behavior indicate cautious trading, with some holders likely waiting for favorable conditions before selling according to trading analysis.

The result is a short-term bearish sentiment that overshadows fundamental growth, with ONDO's decline also tied to general market conditions as market indicators show.
Tokenized Treasuries have grown into a $10 billion market as of late January 2026, with USDY dominating recent RWA flows according to reports.
Products like USDY convert idle corporate cash into yield-generating collateral that can simultaneously work in DeFi as detailed.

Ondo Finance's TVL remains robust at $2.698 billion, with USDY alone accounting for over $1 billion in TVL across multiple chains according to data.
The OUSG product adds another $770 million to the protocol's locked value, reflecting growing interest in Ondo's real-world asset offerings as reported.
Tokenized stocks and ETFs contribute over $500 million to the TVL, indicating increasing demand for blockchain-based access to traditional assets according to market analysis.