tl;dr
Ondo Finance has launched its own Layer-1 (L1) blockchain, Ondo Chain, aimed at bridging traditional finance and decentralized finance. The blockchain has gained support from major financial institutions and addresses challenges hindering Real World Asset (RWA) adoption. The announcement was accompa...
Ondo Finance has unveiled its own Layer-1 (L1) blockchain called Ondo Chain, aimed at bridging traditional finance and decentralized finance. The blockchain addresses challenges hindering Real World Asset (RWA) adoption and has garnered support from major financial institutions.
Despite bearish ONDO token trading, the launch of Ondo Chain is seen as pivotal for the network's broader commitment to expanding the RWA ecosystem. Ondo Finance ranks as the fourth-largest in total tokenized assets, signaling significant institutional demand for on-chain financial products.
The new blockchain will bridge the gap between traditional finance and decentralized finance, providing an infrastructure that ensures regulatory compliance while maintaining blockchain’s open-access ethos. Ondo Chain has already garnered significant support from industry heavyweights such as Franklin Templeton, Wellington Management, and WisdomTree. These organizations add credibility and expertise to the project, potentially solidifying Ondo Finance’s place in the RWA sector.
Ondo Chain aims to address five major challenges hindering RWA adoption, including incompatibility with DeFi, fragmented cross-chain liquidity, high and volatile transaction fees, inadequate network security models, and institutional regulatory concerns. It introduces enhanced security, with validators able to stake RWAs instead of native crypto tokens, reducing volatility-related risks.
World Liberty Financial (WLFI) has purchased $470,000 worth of ONDO tokens following the Ondo Chain launch, bringing the total value of ONDO tokens collected to date to nearly $700,000. The ONDO token continues to trade with a bearish bias, down by almost 5%, trading for $1.35 as of the latest data.
Despite the bearish trading, the launch of Ondo Chain is pivotal for the network. This move, alongside the Ondo Global Markets initiative and plans to launch a tokenized US Treasury fund on the XRP Ledger, reflects the network’s commitment to expanding the RWA ecosystem across multiple blockchains. Ondo Finance ranks as the fourth-largest protocol in total RWA value, with over $653 million in tokenized assets.
With the overall RWA market approaching $17 billion in value, the launch of Ondo Chain and Ondo GM initiatives could further accelerate institutional demand for on-chain financial products, facilitating compliance with regulatory frameworks.