By KarenZ, Foresight News
Ondo Finance has been very active recently. First, it announced the new tokenization framework of Ondo Global Markets, and then announced a major development at its first Ondo Summit - the L1 blockchain "Ondo Chain" for institutional-level RWA.
Ondo Chain: Infrastructure for Ondo Global Markets
When talking about Ondo Chain, we have to mention its close connection with the new tokenization framework of Ondo Global Markets unveiled by Ondo Finance two days ago. The framework aims to enable issuers to create RWA tokens that can be freely transferred like stablecoins, leading the financial market towards a more open economic form.
Specifically, Ondo Global Markets (Ondo GM) is a tokenization platform dedicated to using blockchain technology to provide global investors with on-chain access to U.S. listed securities. The platform will launch a series of tokenized assets based on securities, which are 1:1 paired with underlying assets (including stocks, bonds, ETFs, etc.) and can be freely transferred outside the United States.
Ondo Global Markets will break geographical restrictions and enable global investors to access more than a thousand securities listed on the New York Stock Exchange (NYSE) and Nasdaq 24/7/365, covering equity, fixed income ETFs, and stocks of companies such as Apple, Tesla, and Uber. At the same time, the platform supports instant minting, redemption, transfer, purchase, and sale of tokenized assets, and seamlessly integrates these assets into the DeFi field, such as lending, income, derivatives, etc., to form DeFi Lego for RWA.
Ondo Chain is the support and infrastructure of Ondo Global Markets.
What is Ondo Chain? What are its characteristics?
According to the official description of Ondo Chain, Ondo Chain promotes the large-scale use of tokenized real-world assets by combining the openness of public blockchains with the compliance and security features of permissioned chains.
Ondo Chain’s design consultants include new members of the Ondo ecosystem such as Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon and McKinsey, among others.
On Ondo Chain, validators are licensed, which enhances compliance and investor protection. However, the rest of the chain remains open, and anyone has the right to issue tokens and develop applications. This design ensures compliance while stimulating innovation.
The core highlight of Ondo Chain is its native support for RWA assets, especially the tokens issued by Ondo GM. Ondo Chain plans to support the staking of Ondo GM tokens and other high-quality liquid assets, which not only provides security for the network, but also creates income opportunities for idle assets.
In the connection with Tradfi, Ondo Chain achieves seamless connection with private networks and traditional financial environments by allowing a group of selected financial institutions to run some verification nodes. This design can reduce transaction delays, prevent front-running transactions, and provide institutions with access to their unique assets and liquidity, further enhancing the attractiveness and practicality of Ondo Chain in institutional-level applications.
At the data level, Ondo Chain has a built-in oracle mechanism that enables verification nodes to directly publish off-chain data (such as asset prices, interest rates, market indices, etc.), ensuring the accuracy and real-time nature of on-chain data and reducing the risk of data manipulation and errors.
In addition, Ondo Chain also enables full-chain messaging and cross-chain asset transfers through native integration of Ondo Bridge. Its decentralized verification network (DVN) provides the main security guarantee for the system, and can be further enhanced with additional DVN when the transaction amount is high. More importantly, Ondo Chain supports seamless sharing of data such as KYC status, sanctions list, and collateral quantity, simplifying the process for developers to create full-chain applications.
summary
Ondo Chain is attracting the participation of traditional financial institutions through the RWA-specific licensed chain, seamlessly connecting traditional financial liquidity by providing compliance and trust, preventing front-running transactions, and enhancing investor protection. Ondo Finance is promoting the vigorous development of RWA through efforts in tokenized assets, infrastructure, and ecosystems.
