Tokenized securities issuer Ondo Finance announced the launch of its new tokenization platform, Ondo Global Markets (Ondo GM), designed to bring public securities—including stocks, bonds, and ETFs—onto the blockchain.
"By leveraging blockchain technology, we can bring institutional-grade financial markets on-chain, making them more accessible, transparent, and efficient," Ondo stated in the announcement.
Bridging Traditional Finance and Blockchain
Ondo GM aims to address key pain points in the current securities investment landscape, such as:
- High transaction fees
- Limited accessibility
- Transfer friction
- Lack of interoperability
The platform will offer investment opportunities in securities listed on the NYSE and NASDAQ, including:
| Asset Type | Examples |
|---|---|
| Fixed-income ETFs | US Treasury ETFs, Corporate Bonds |
| Equities | Apple (AAPL), Tesla (TSLA) |
How Ondo GM Works
- 1:1 Backed Tokens: Each token represents direct ownership of underlying assets (e.g., publicly traded stocks) and can be freely transferred outside the U.S., similar to stablecoins.
- Licensing Integration: Issuers can embed compliance mechanisms at the distribution level, returning control to stakeholders.
Market Response
Following the announcement, ONDO (Ondo Finance’s governance token) briefly surged 5% before stabilizing at $1.43. Analysts attribute the muted long-term price action to broader market conditions rather than platform fundamentals.
👉 Explore how tokenization is reshaping global markets
FAQs
Q: Who can invest via Ondo GM?
A: Primarily non-U.S. investors seeking exposure to U.S. securities without traditional brokerage hurdles.
Q: Are the tokens regulated?
A: While backed by real assets, transferability depends on jurisdictional compliance. Ondo emphasizes stakeholder-controlled licensing.
Q: What’s next for Ondo Finance?
A: Expansion into additional asset classes (e.g., commodities) and partnerships with institutional liquidity providers.
Why Tokenization Matters
Blockchain-based securities reduce settlement times from T+2 to near-instantaneous, slashing costs for cross-border investors.
👉 Learn more about real-world asset (RWA) tokenization
Disclaimer: This content is for informational purposes only and does not constitute financial advice.