- Ondo Finance has launched Ondo Chain, a layer-1 blockchain designed for institutional real-world asset (RWA) tokenization, with backing from major financial players like BlackRock, PayPal, and Morgan Stanley.
- The platform, which prevents MEV and front-running through a permissioned model, has also attracted investment from the Trump family’s World Liberty Financial (WLF), signaling growing confidence in blockchain-based asset management.
Ondo Finance has taken a significant step in the crypto and financial sectors by launching Ondo Chain, a layer-1 blockchain specifically designed for institutional real-world asset (RWA) tokenization. This move is poised to bridge the gap between traditional finance and decentralized technologies, offering firms a secure and efficient platform to digitize tangible assets.
A Strategic Move for Wall Street Firms
The announcement was made on February 6 during Ondo Finance’s inaugural New York summit. The platform is targeting major financial institutions by providing a blockchain infrastructure that allows the seamless tokenization of RWAs, ensuring compliance and security for institutional investors.
Notably, the development of Ondo Chain is being advised by an impressive roster of financial powerhouses, including BlackRock, PayPal, and Morgan Stanley, along with new members such as Franklin Templeton, WisdomTree, Google Cloud, ABN Amro, Aon, and McKinsey. These strategic partnerships highlight the growing interest of traditional financial institutions in blockchain-based asset management.
Features and Institutional Benefits
Ondo’s layer-1 blockchain is designed to provide various institutional-grade financial services, such as:
- Prime Brokerage Services: Institutions can benefit from a cross-collateralized margin for RWAs.
- Staking Tokenized RWAs: Validators can stake RWAs to enhance network security.
- Wealth Management Solutions: Ondo Chain aims to provide a secure and efficient wealth management ecosystem for tokenized assets.
Despite being institutionally focused, Ondo Finance has emphasized that anyone can issue tokens, develop applications, and participate in the network, fostering inclusivity within the ecosystem.
Permissioned Model for Security and Compliance
A key differentiator of Ondo Chain is its permissioned model, which prevents MEV (Maximal Extractable Value) and front-running—two major concerns for institutional investors. This structure enhances investor protection and ensures best execution guarantees, making it an attractive option for firms requiring high levels of security and compliance.
Trump Family’s World Liberty Financial Strengthens Ties
Adding to the momentum, Chase Herro, co-founder of the Trump family’s World Liberty Financial (WLF), disclosed plans to establish a strategic reserve of tokens, including Ondo’s native ONDO token. On February 6, WLF acquired approximately $470,000 worth of ONDO tokens, following a previous purchase of $270,000 worth of ONDO tokens in December 2023.
With WLF currently holding $35.4 million worth of cryptocurrencies, its growing investment in Ondo Chain signifies increasing confidence in tokenized RWAs as the future of institutional finance.
What’s Next for Ondo Chain?
While Ondo Finance has yet to announce a specific launch date for Ondo Chain, the project’s backing by major financial institutions and the Trump family’s growing involvement indicate a promising future for RWA tokenization. As traditional finance continues its integration with blockchain technology, Ondo Chain could play a pivotal role in shaping the landscape of institutional investments.
Final Thoughts Ondo Finance’s launch of Ondo Chain marks a groundbreaking advancement in blockchain-based asset tokenization. By bridging traditional finance with decentralized networks, this initiative could revolutionize how institutions manage and secure real-world assets in a digital-first era.
