Ondo drops tokenized asset blockchain plans for private, high-speed trading network
Tokenized asset specialist Ondo Finance ONDO$0.4037 has deserted plans to construct a standard layer-1 blockchain, as a substitute introducing a buying and selling community it says is healthier fitted to the subsequent wave of onchain monetary belongings.
Dubbed Ondo Community, the system marks a shift from the corporate’s February 2025 imaginative and prescient for Ondo Chain, a blockchain for institutional finance and tokenized real-world belongings. After constructing its new perpetual futures platform, Ondo Perps, the agency stated it concluded {that a} conventional blockchain wasn’t the most effective instrument for dealing with the pace and privateness institutional buying and selling requires.
Ondo Perps is the primary utility utilizing the community, with plans to supply tokenized belongings as collateral for buying and selling.
The pivot comes as tokenization gathers momentum throughout Wall Avenue. Tokenization — the method of representing conventional belongings corresponding to shares, bonds and funds as blockchain-based tokens — is gaining traction as corporations look to modernize capital markets with quicker settlement and around-the-clock buying and selling. On the identical time, perpetual futures, as soon as largely confined to crypto markets, are increasing to conventional belongings corresponding to shares and commodities like oil and gold.
Past issuing tokenized belongings
Ondo has emerged as one of many sector’s largest issuers, with about $2.6 billion in tokenized U.S. Treasury merchandise throughout OUSG and USDY and roughly $850 million in tokenized equities, based on rwa.xyz. The agency’s broker-dealer obtained final week FINRA approval to launch regulated markets and companies for tokenized securities.
