Ondo Finance launches Ondo Chain: a full-chain network designed for tokenization asset trading

tokenization product protocol Ondo Finance recently announced the launch of 'Ondo Chain', as an L1 blockchain designed specifically for real-world assets (RWA), aiming to address Decentralized Finance compatibility, Cross-Chain Interaction, Liquidity decentralization, high Transaction Cost, and institutional-level Compliance issues, with the potential to drive the securitization of global capital markets and enhance Liquidity and transparency.

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Ondo Finance launches Ondo Chain

Ondo Finance announces the launch of a new L1 blockchain Ondo Chain, which is a full-chain (omnichain) network designed for tokenization assets, aiming to address the limitations of the current blockchain infrastructure and provide more efficient solutions for institutional capital markets.

As the global capital markets continue to converge with blockchain technology, Ondo Finance plans to further build dedicated infrastructure on its tokenization trading platform, Ondo Global Markets, to ensure that RWAs can operate smoothly on the chain:

The existing public chains cannot fully meet the needs of institutional-grade securities trading, so we fill this gap by launching Ondo Chain.

(Ondo Finance launches the tokenization asset trading platform Ondo Global Markets, reshaping the traditional financial market landscape)

Solve the infrastructure barriers of existing blockchains

Ondo pointed out that currently, other blockchains in the market are facing multiple challenges in supporting RWA, which has affected large-scale adoption.

Insufficient compatibility with Decentralized Finance

First of all, existing Decentralized Finance protocols are not designed for the needs of public securities, such as stock splits or dividend distributions, which are difficult to achieve. Existing oracle technologies also struggle to provide accurate and real-time on-chain data for thousands of public securities.

Cross-Chain InteractionLiquidity Decentralization

In addition, the Cross-Chain Interaction issuance of RWA may also lead to Liquidity dispersion, increasing the complexity of asset management; and relying on a single Cross-Chain Interaction bridge may bring security risks, which can easily lead to cybersecurity concerns.

High and volatile Transaction Cost

Meanwhile, the transaction cost on many PoS chains is affected by the fluctuation of the native token price, leading to unstable Transaction Cost:

This also increases the risk for validators, as the security of the blockchain may decrease when the market is in a downturn.

Ondo Chain: RWA solution that combines the openness of public chains and institutional-grade security

Ondo Chain adopts the L1 blockchain architecture, combining the 'openness of public chains' with the 'security and Compliance of private chains,' providing infrastructure suitable for RWA, mainly characterized by the following features.

Security mechanism designed for RWA

First of all, Ondo Chain can provide institutional-level network security. Validators can stake high Liquidity RWA tokens such as US Treasury token to ensure network security, instead of relying on volatile native tokens:

Validators also need to undergo review to ensure that transactions are not affected by malicious MEV and comply with institutional Compliance standards.

Efficient Cross-Chain Interaction Asset Management and Liquidity

In addition, Ondo Chain also has built-in full-chain interoperability, provided by Ondo Bridge for Cross-Chain Interaction asset management, which can verify RWA asset reserves regularly through validators to ensure that tokens are backed 1:1 by real assets, enhancing transparency and credibility.

Support Decentralized Finance interoperability, reduce Transaction Cost

At the same time, Ondo Chain actively connects with the traditional financial market, enabling institutional investors to engage in leverage trading, financing, and cross-collateralization through the network:

Large asset management institutions and banks can also connect their private networks to provide additional Liquidity sources.

In addition, the network can use RWA tokens to pay Gas fees, reducing the participation threshold of traditional financial institutions and improving user experience.

Compare with existing solutions

Ondo pointed out that compared to public chains such as Ethereum and enterprise-level private chains such as Corda ( Alliance Chain ), Ondo Chain provides a technical architecture more suitable for RWA.

(Ondo Finance collaborates with a traditional financial giant to launch Ondo Nexus, strengthening tokenization of national debt Liquidity)

Application Scenarios: Promoting RWA into the era of on-chain finance

Ondo Chain plans to be applied in multiple financial market scenarios, including:

Institutional-grade lending and leveraged trading: providing Cross-Chain Interaction collateral and leveraged trading services, supporting RWA tokens as collateral.

Cross-Chain Interaction Asset Issuance and Management: Support the seamless transfer of RWA between different public chains and private chains, reducing Liquidity issues.

Compliance's asset management services: Supports automated portfolio rebalancing, combining the benefits of cryptocurrencies with traditional securities markets.

Institutional-level stablecoin issuance and yield management: It can issue stablecoins backed by US Treasuries or other assets and provide yield management services.

Ondo Finance believes that by integrating traditional finance and Decentralized Finance, Ondo Chain can establish a more efficient, secure, and transparent blockchain infrastructure for RWA, further promoting the digitization of capital markets.

With the official launch of Ondo Chain, we hope to collaborate with developers, asset management institutions, and market participants to jointly promote the application of blockchain technology in the global financial market.

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