KEY TAKEAWAYS
- Ondo Finance launches Ondo Global Markets to make U.S. securities accessible onchain, addressing high fees and platform fragmentation.
- The platform offers tokenized exposure to stocks, bonds, and ETFs, backed 1:1 by underlying assets, ensuring liquidity and transferability.
- Ondo GM’s reimagined framework allows for freely transferable tokens, enhancing compliance and security while democratizing market access.
- Global investors, traditional financial institutions, and crypto platforms benefit from reduced complexity and new distribution channels.
Ondo Finance has announced a significant advancement in its mission to bring financial markets onchain through its Ondo Global Markets (Ondo GM) platform. This initiative aims to address long-standing issues in the traditional investing experience, such as high fees, limited access, and platform fragmentation, by leveraging blockchain technology to make financial markets more accessible, transparent, and efficient.
The Ondo GM platform is designed to provide investors outside the United States with onchain exposure to thousands of U.S. publicly traded securities, including stocks, bonds, and ETFs. Each token issued on the platform is backed 1:1 by an underlying asset, ensuring liquidity and transferability similar to stablecoins. This approach aims to democratize access to U.S. securities, allowing global investors to participate in markets that were previously difficult to access.
Reimagining Tokenization Framework
Initially, Ondo planned to create a permissioned system where tokens represented client instructions at traditional broker-dealers. However, after engaging with stakeholders, including developers and traditional finance partners, the company shifted to a more open and accessible design. The new framework allows for freely transferable tokens, with permissioning built into the distribution layer as needed for compliance and security purposes.
This reimagined framework positions Ondo GM to propel financial markets into an open economy, addressing challenges like high fees and transfer frictions. The platform’s features include broad access to real-world assets (RWAs), global availability, instant minting and redemption, and built-in access to margin, among others.
Benefits for a Wide Range of Stakeholders
Ondo GM offers significant benefits to various stakeholders, including retail and institutional investors, traditional financial institutions, and participants in the crypto ecosystem. Individual investors outside the U.S. can gain low-friction exposure to U.S. securities, while traditional broker-dealers can reduce operational complexity by integrating Ondo GM. Asset managers and issuers gain a new distribution channel, and crypto platforms can offer exposure to high-quality traditional securities.
The platform also addresses issues such as platform lock-in and fragmentation by allowing tokens to be freely transferable and interoperable across different platforms. Additionally, Ondo GM integrates institutional-grade borrowing options, enabling investors to borrow against their tokenized holdings and cross-collateralize positions with both traditional and crypto assets.
Ondo Finance is set to launch the Global Markets platform this year, marking a significant step toward making capital markets more accessible and catalyzing the growth of the open economy. The company plans to announce further developments in the coming days, which will outline its full vision for the future of financial markets.
For more information, the full announcement can be read here.
Why This Matters: Impact, Industry Trends & Expert Insights
Ondo Finance’s launch of the Ondo Global Markets platform marks a significant step in integrating traditional financial markets with blockchain technology, aiming to democratize access to U.S. securities for global investors.
A recent Finextra report highlights the growing trend of asset tokenization, where traditional financial tools are converted into digital tokens to enhance efficiency and accessibility. This aligns with Ondo’s initiative to provide onchain exposure to U.S. securities, making financial markets more accessible and efficient.
Experts predict that by 2025, blockchain technology will significantly impact traditional finance by enhancing security and streamlining operations. The European Financial Review notes that tokenization of real-world assets is gaining traction, making traditionally illiquid assets more accessible. This supports Ondo’s approach to democratizing access to U.S. securities through its innovative platform.
Explore More News:
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
