The team at Ondo Finance introduced an L1 blockchain solution for the tokenization of real-world assets (RWA) by institutional entities. The project aims to bridge the gap between TradFi and DeFi.
Ondo Finance, a decentralized financial protocol, announced the launch of the Ondo Chain blockchain, which is built on a Proof-of-Stake consensus algorithm specifically designed for institutional participation in the RWA market. Key features of this solution include the integration of permitted validators, decentralized price oracles, omnichain communication mechanisms, and the ability to use tokenized assets for staking and transaction guarantees.
Ondo Chain will provide institutional players with access to advanced on-chain market capabilities, including:
- prime brokerage services allowing cross-collateralization of crypto and traditional assets;
- on-chain asset management with automatic portfolio balancing;
- cross-chain token issuance and the distribution of stablecoins backed by RWAs.
Developed in response to the limitations of existing blockchain solutions, Ondo Chain combines the advantages of both public and private networks, ensuring institutional-grade security, DeFi compatibility, seamless liquidity, and low transaction costs. While primarily targeted at institutional entities, the platform will also be accessible to retail investors.
The creation of the protocol involved consultations with representatives from major companies, including Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, McKinsey, and others, all of which are already utilizing RWA products within the Ondo Finance ecosystem.
