In a bold move to bridge traditional finance with decentralized innovation, Ondo Finance has announced the launch of its new layer-1 blockchain—Ondo Chain—designed specifically to facilitate the tokenization of real-world assets (RWAs). The announcement, made during Ondo Finance’s inaugural New York summit on February 6, 2025, marks a significant milestone in institutional blockchain infrastructure and aims to overcome several longstanding challenges in the tokenized securities market.
Quick Take
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Ondo Finance's new Layer-1 blockchain, Ondo Chain, is purpose-built to help institutions tokenize real-world assets, bridging the gap between traditional finance and decentralized markets.
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By combining the benefits of public blockchains with the enhanced compliance and security of permissioned systems, Ondo Chain effectively mitigates risks such as MEV and front-running.
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The project is supported by major financial institutions and technology giants including BlackRock, PayPal, Morgan Stanley, Franklin Templeton, WisdomTree, Google Cloud, ABN Amro, Aon, and McKinsey.
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With strategic moves like World Liberty Financial's significant ONDO token purchases and a keynote by Donald Trump Jr., the initiative has garnered considerable attention from both traditional finance and crypto communities.
Ondo Chain, a Blockchain Built for Institutions
Ondo Chain is engineered to empower institutions—ranging from major asset managers to traditional Wall Street firms—to seamlessly tokenize a variety of real-world assets. By integrating features such as prime brokerage with cross-collateralized margins, staking of tokenized RWAs, and advanced wealth management functionalities, Ondo Chain offers a robust platform for creating institutional-grade financial markets on-chain. Its design seeks to resolve critical issues including cross-chain liquidity fragmentation, high transaction fees, regulatory uncertainties, bridging inefficiencies, and security risks that have long hindered the mass adoption of tokenized securities.
Source: X
Merging the Best of Public and Permissioned Blockchains
One of the standout features of Ondo Chain is its hybrid architecture, which combines the openness of public blockchains with the enhanced security and compliance of permissioned networks. Validators on Ondo Chain, who secure the network by staking tokenized RWAs, operate under a permissioned model specifically designed to prevent miner extractable value (MEV) and front-running. This approach not only strengthens investor protection but also provides institutions with the best execution guarantees necessary for high-stakes financial operations.
In addition, the blockchain is built to be Ethereum Virtual Machine (EVM)-compatible, enabling developers and financial institutions alike to issue tokens, build decentralized applications (dApps), and participate in a thriving ecosystem that bridges decentralized finance (DeFi) with traditional financial markets. Native features like omnichain messaging and integrated proof-of-reserves further bolster the platform’s capabilities, ensuring transparent and cost-effective operations for institutional investors.
BlackRock and Other Top Financial Institutions Driving Ondo Chain’s Innovation
The development of Ondo Chain has been supported and advised by a formidable roster of industry leaders. Existing members such as BlackRock, PayPal, and Morgan Stanley are joined by new advisors including Franklin Templeton, WisdomTree, Google Cloud, ABN Amro, Aon, and McKinsey. This cross-industry collaboration underscores the growing recognition of tokenized RWAs as a transformative asset class and reflects a shared commitment to evolving financial market infrastructure.
Key Investments and Endorsements Fueling Market Confidence
Trump’s World Liberty Financial (WLFI) buys ONDO tokens | Source: Arkham Intelligence
Adding a layer of high-profile endorsement, the summit featured a surprise closing address by Donald Trump Jr. of World Liberty Financial—a crypto platform with strong ties to the Trump family. The involvement of World Liberty Financial was further solidified by its recent strategic move to create a “strategic reserve” comprising ONDO tokens. Data from Arkham Intelligence indicates that the platform purchased approximately $470,000 worth of ONDO tokens during the event, following an earlier acquisition in December that contributed to a significant flurry of token purchases in a multi-million-dollar market.
RWA Tokenization Boom: Trends, Growth, and Market Impact
Total tokenized RWA value | Source: RWA.xyz
The emergence of Ondo Chain comes at a time when the global market for tokenized assets is witnessing unprecedented growth. According to RWA.xyz, the total value of tokenized assets on-chain has exceeded $17 billion, with the U.S. Treasuries market alone representing around $3.5 billion. Ondo Finance’s ambition to capture a $650 million share of this market highlights both the enormous potential and the urgent need for scalable, secure, and compliant blockchain solutions.
While other blockchain projects like Sui and Aptos have also signaled interest in the tokenized asset space, Ondo Chain’s hybrid model—melding the transparency of public networks with the regulatory safeguards of permissioned systems—positions it uniquely to cater to both traditional financial institutions and crypto-native investors.
Advancing Institutional-Grade DeFi Solutions
“Through these features, Ondo Chain will provide infrastructure purpose-built for the tokenization of RWAs while catering to the comprehensive needs of both traditional and crypto-native investors,” stated a representative from Ondo Finance. “We believe that Ondo Chain represents a significant step forward in the evolution of institutional-grade blockchain infrastructure.”
This sentiment resonates with industry leaders who have long championed the transformative potential of blockchain technology. Larry Fink of BlackRock and Jenny Johnson of Franklin Templeton have both underscored blockchain’s role in creating innovative investment opportunities and reshaping the landscape of capital markets.
ONDO surges following the announcement of Ondo Chain | Source: KuCoin
Conclusion
While Ondo Finance has not yet revealed an official launch date for Ondo Chain, the strong backing from top-tier financial institutions and the strategic moves by key market players signal that the network is poised to become a cornerstone of the tokenized asset market. As the ONDO token—currently ranked as the 33rd largest cryptocurrency with a market cap of $4.3 billion—continues to garner attention, the broader ecosystem can expect increased institutional participation, enhanced transparency, and new avenues for yield generation.
For the broader crypto community, the unveiling of Ondo Chain is a clear indicator of the growing convergence between traditional finance and blockchain innovation—a trend that promises to redefine the future of asset management and investment on a global scale.
