In February 2025, Ondo Finance, one of the leaders in the real-world asset (RWA) tokenization space, introduced two key innovations: the launch of its proprietary blockchain Ondo Chain and the platform Ondo Global Markets (OGM). Both products aim to integrate traditional financial instruments with decentralized technologies, providing institutional investors with access to tokenized assets in compliance with regulatory standards.

Ondo Chain: A New Generation of Institutional Blockchain

Ondo Chain is a permissioned layer-1 blockchain designed specifically for the tokenization of real-world assets. It combines regulatory compliance and security with the openness and accessibility of public networks.

Key features of Ondo Chain include:

• Permissioned Validators: Only pre-approved participants, primarily regulated financial institutions, can confirm transactions, ensuring compliance and risk reduction.

• Tokenized Asset Staking: Instead of using volatile cryptocurrencies, validators may stake tokenized real-world assets and other low-risk securities to secure the network.

• Integrated Oracles and Proof-of-Reserves Systems: Built-in mechanisms deliver accurate and up-to-date financial data, enhancing transparency and trust in asset backing.

• Cross-chain Interoperability: Ondo Chain supports secure and efficient asset transfers between different blockchain networks, improving liquidity and compatibility.

Ondo Chain is being developed with the participation of leading financial institutions such as Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon, and McKinsey, underscoring the project’s alignment with institutional expectations.

Ondo Global Markets: A Platform for Tokenizing Traditional Financial Instruments

Ondo Global Markets (OGM) is a platform offering institutional investors access to tokenized versions of traditional financial instruments such as stocks, bonds, and ETFs. The platform features over 1,000 securities, including fixed-income instruments and individual stocks, enabling 24/7 access and improved liquidity.

Key Ondo Finance products include:

• USDY: A yield-bearing stablecoin backed by short-term U.S. Treasury bonds.

• OUSG: A tokenized fund composed of short-term U.S. government bonds, providing access to high-quality, low-risk assets.

Both products allow investors to earn yield from traditional assets in a decentralized environment.

Market Response and Institutional Support

Following the announcement of Ondo Chain and OGM, the ONDO token showed resilience in the market despite broader crypto volatility. Additionally, World Liberty Financial, connected to the Trump family, invested \$470,000 in ONDO tokens, expressing confidence in the project’s long-term potential.

Total Value Locked (TVL) in the Ondo ecosystem increased from \$568.32 million to \$653.44 million in the week after the product launches, indicating rising interest from users and institutional investors.

The launch of Ondo Chain and Ondo Global Markets marks a significant step toward integrating traditional finance with decentralized technologies, offering institutional investors a reliable and compliant infrastructure for working with tokenized assets.