Ondo Finance Launches Ondo Chain, a Layer-1 Blockchain Designed for Institutional-Grade Tokenization of Real-World Assets, Enhancing Global Liquidity.

Ondo Finance has launched Ondo Chain, a Layer 1 blockchain focused on institutional-grade tokenization of real-world assets (RWAs).

Ondo Finance has launched Ondo Chain, a Layer 1 blockchain designed for institutional-grade tokenization of real-world assets (RWAs) to enhance global liquidity, emerging as an onchain capital markets platform with its announcement at the New York summit on February 6.

Ondo Chain is notably designed to solve institutional use problems in modern public blockchains through its functionality. Having maintained extensive collaborations with traditional financial partners as they identified market requirements during the previous year, the Ondo team set out to find the various essential obstacles stopping tokenized assets from achieving widespread adoption. They found that institutional participants faced problems such as the incompatibility of DeFi and separation of liquidity across multiple chains, and excessive fees and regulatory uncertainties. The Ondo Chain solution integrates advantages from both public and permissioned blockchain systems to solve these existing market challenges.

One major problem that public securities operations face is the inability to use DeFi due to its incompatibility. For example, the implementation of traditional finance stock splits becomes difficult through most public blockchain networks due to their management complexities. However, Ondo Chain provides built-in tokenization for RWAs which allows smooth blockchain integration for all users.

Ondo Chain Revolutionizes Financial Systems with Tokenized RWAs

Another problem that the current state of cross-chain liquidity forces is major hurdles in managing financial assets throughout the industry. For example, managing liquidity through multiple chains with the issuance of RWAs becomes complicated thus creating additional risks. However, the Ondo Chain system provides users with a strong multi-chain platform that enables secure management of assets as well as efficient operation. The blockchain operates smoothly amongst different chains to minimize the obstacles which come with bridging operations.

Finally, data transaction fees in public blockchains are marked by unstable and unpredictable fee rates. For example, Proof-of-stake blockchains need payment of fees using their native volatile tokens as part of their operating requirements. To solve this problem, fees processed through Ondo Chain may be settled using RWAs tokenized on the network to enhance stability while lowering transaction fees. This feature serves essential needs of institutional actors since they depend on cost predictability and stable assets.

Ondo Chain also eliminates regulatory restrictions through its validator system of specifically selected entities where institutional requirements receive full compliance while regulated financial institutions can operate safely through this system.

Ondo Chain launches the next generation of tokenized RWAs which enables prime brokerage solutions and wealth management platforms along with permissioned validators to support cross-chain token creation, ultimately bringing together decentralized and traditional finance components to establish a basis for an openly efficient financial system.