New York, Ny-Dondo Finance, the second largest tokenized state sheds issuer, said it plans to start its own LAG-1 blockchain designed for tokenized assets in the real world in an attempt to connect traditional capital markets with decentralized financing, the company announced on Thursday at the initial Ondo summit.
The Ondo chain was designed to meet institutional observations while maintaining transparency and accessibility of public blockchains as Ethereum, the company said. The network will rely on allowed validators to verify transactions and ensure accurate financial data, such as asset prices and token support. It will also support the efforts of tokenized assets in the real world and native brodity formation between blockchains for interoperability.
“Financial markets are too late for an upgrade,” CEO Nathan Allman said in a statement. “We create an ecosystem that bridges the best of traditional financing with blockchain technology.”
Ondo, the native token of the ecosystem, so fleeting swings after the message dip 1.5% before collecting 3.5% higher.
“We really started building something that could combine the best of both traditional funding with its incredible deep liquidity and investor protection with all the benefits of defi with its open access and innovation and new primitives,” Ian de Bode, Chief Strategy Officer at Ondo, said during a presentation at the Ondo Summit in New York City on Thursday. “However, when we started on this mission, we realized that the necessary conditions to really gather really did not exist. The infrastructure to bring these two together really were not present”
The message comes the day after Ondo revealed a tokenization platform that helps place stocks, bonds and funds on blockchain rails.
Allman said he believes that with a new administration in place it could take two to three years to achieve meaningful adoption of tokenized assets in the real world.
Tokenization or creating digital tokens, representing ownership of traditional assets on a blockchain, wins traction globally. Institutions and even governments are increasingly investigating the process in the pursuit of operational efficiency gains such as faster settlements and wider investor benefit. The Tokenized RWA market could grow to trillion of dollars through this decade, reports from McKinsey, BCG, 21Shares and Bernstein have projected.
Recently, several influential leaders in the financial world proclaimed tokenized RWAs as the next boundary of financial innovation.
Larry Fink, CEO of Asset Management Behemoth Blackrock, said bonds and shares will be traded on blockchain rails in the future and encouraged US regulators and decision makers to create rules for security tokens. Vlad Tenev, co-founder and CEO of Digital Brokerage Robinhood, said tokenization could democratize access to private equity investments currently limited to accredited investors and wealthy individuals, and proposed rule changes to lock tokenized asset investments for retail investors.
Ondo Finance is the second largest issuer of tokenized US Treasury, according to Rwa.xyz -Data. The Protocol’s US dollar outcome (USDY) and short -term US government bonds (OUSG) -tokens stands at $ 385 million and $ 268 million market value respectively.
Update (6 February 2025, 15:36 UTC): Adds quotes and ondo price move.
