RWA Tokenization Platform Ondo Global Markets Unveiled by Institution-focused DeFi Protocol Ondo Finance

Institution-focused DeFi protocol Ondo Finance has unveiled a new real-world assets (RWA) tokenization platform, Ondo Global Markets.

Institution-focused DeFi protocol Ondo Finance has unveiled a new real-world assets (RWA) tokenization platform, dubbed Ondo Global Markets. In a post on its blog, the tokenized RWA issuer disclosed that its new platform will bring traditional assets on-chain.

According to Ondo Finance, Ondo Global Markets (Ondo GM) will onboard stocks, exchange-traded funds (ETFs), and bonds to the on-chain ecosystem.

“Our RWA tokenization platform is designed to enable onchain access to stocks, bonds, and ETFs. What stablecoins did for dollars, Ondo Global Markets will do for securities,” the protocol said.

The protocol noted that blockchain technology will address the current challenges in the investment ecosystem. Highlighting some of the issues, Ondo Finance mentioned limited access, platform fragmentation, hidden risks, high fees, and transfer frictions, adding that these challenges have prevented many people from accessing the capital markets.

However, its Ondo GM, which has been in the works since last year, will address these issues by enabling securities issuers to create freely transferable tokens while incorporating compliance at the distribution layer.

Ondo Finance to Bring Securities On-Chain

Per the announcement on its blog, Ondo GM will now enable investors outside the US to gain exposure to US publicly traded securities in the same way that they have access to US dollars through stablecoins. Some of those expected to benefit directly from the new platform include individual investors and traditional broker-dealers outside the US, as well as asset managers, issuers, and crypto platforms.

“Ondo Global Markets brings the transparency, efficiency, and accessibility enabled by blockchain technology to institutional-grade finance,” the Ondo Finance announcement reads.

While the protocol did not provide information on the issuers who will create tokens on the platform, it did mention that over a thousand high-quality securities will be available for users to trade. It added that third-party developers can build financial applications on the Ondo GM using its software development kits (SDKs) and APIs.

ONDO Sees Muted Performance Despite Positive News

Meanwhile, the RWA protocol’s unveiling of its new platform is the latest in a series of announcements leading up to its first-ever Ondo Summit, which will be held in New York City on February 6.

Before this, the protocol announced the launch of a tokenized short-term US Treasury Fund (OUSG) on the Ripple XRP Ledger. The fund, which is set to go live within six months, is backed by BlackRock BUIDL and taps into the capabilities of the XRPL and Ripple RLUSD stablecoin.

More recently, Ondo also unveiled Ondo Nexus, a liquidity supply initiative for tokenized treasuries. The protocol said this would boost liquidity for third-party issuers through a partnership with PayPal and BlackRock.

It also selected WisdomTree, Franklin Templeton, Fundbridge, Wellington Management, and BlackRock as issuers for its tokenized treasuries. Ondo Finance controls about 80% of the tokenized US Treasuries market.

Despite the various initiatives, products, and partnerships with TradFi institutions, the ONDO token has not seen any substantial increase in its value. Since rising as high as $1.499 earlier today, the token has dropped to $1.363 with barely a 2% gain in the last 24 hours.

Although it is up 86% over the past 90 days, the token remains down from its $2.141 peak and has lost 6% year-to-date.

However, many industry stakeholders believe the protocol will grow substantially in the coming years, especially as tokenization sees more adoption.