Ondo Finance is a decentralized finance (DeFi) platform specializing in tokenizing Real World Assets (RWA) like stocks, bonds, and ETFs, enabling global on-chain investment access. Recently, Ondo launched Ondo Chain, a layer-1 solution designed to accelerate institutional-grade on-chain financial markets for RWA. Here’s an in-depth look at Ondo Finance’s ecosystem.
What Is Ondo Finance?
Ondo Finance is a DeFi platform that tokenizes traditional financial assets such as equities, government bonds, and ETFs, making them accessible to all users via blockchain. It provides transparent infrastructure tailored for both retail and institutional investors through products like USDY Token, OUSG, Ondo GM, and Ondo Chain.
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Key Products of Ondo Finance
Initially a Yield Strategy project, Ondo pivoted in 2022 to focus exclusively on RWA solutions after recognizing market shifts. Its current product suite includes:
1. USDY Token – US Dollar Yield Token
- Description: A yield-bearing stablecoin pegged to 1 USD, backed by short-term US Treasuries and bank deposits.
- Target Users: Non-US investors.
Features:
- 5.1% APY (adjusted monthly).
- Collateral managed by Ankura Trust for bankruptcy protection.
- Supported chains: Ethereum, Mantle, Solana.
How It Works:
- Onboarding: KYC verification required.
- Investment: Deposit USDC or bank transfers (>$100k).
- Tokenization: Receive a Token Certificate (PDF) post 40-50 day lock-up; USDY minted afterward.
- Redemption: Convert USDY back to USD (fees apply).
👉 Discover how USDY compares to other yield-bearing stablecoins
2. OUSG – Ondo Short-Term US Government Bond Fund
- Description: Tokenized ETF for US short-term government bonds (e.g., BlackRock’s SHV ETF).
- APY: 4.76% (subject to fees).
- Chains: Ethereum, Polygon, Solana.
Workflow:
- Subscription: USDC → Coinbase Custody → ETF purchase via Clear Street.
- Redemption: OUSG tokens redeemed for USDC via smart contracts.
3. Ondo Global Markets (Ondo GM)
A platform tokenizing US-listed stocks, bonds, and ETFs for global on-chain access:
Features:
- 24/7 trading for non-US investors.
- Instant mint/redeem via stablecoins.
- High liquidity with low slippage.
4. Ondo Chain
A Proof-of-Stake (PoS) layer-1 blockchain for RWA, offering:
- RWA staking for validators.
- Omnichain messaging (EVM/non-EVM compatible).
- Open-source infrastructure for developers.
ONDO Tokenomics
| Parameter | Detail |
|---|---|
| Token Name | Ondo (ONDO) |
| Blockchain | Ethereum (ERC-20) |
| Total Supply | 10,000,000,000 ONDO |
| Initial Supply | 3,159,107,529 ONDO |
Allocation:
- Ecosystem Growth: 52.1% (24% unlocked at TGE).
- Protocol Development: 33% (12-month cliff).
- Private Sales: 12.9% (12-month cliff).
Utility:
- Governance voting in Ondo DAO.
- Rewards for platform users and governance participants.
Team & Investors
- CEO Nathan Allman (ex-Goldman Sachs).
- COO Justin Schmidt (Talos, Goldman Sachs).
- $46M raised from Pantera Capital, Coinbase Ventures, and more.
FAQs
1. What makes Ondo Finance unique?
Ondo bridges TradFi and DeFi by tokenizing RWA with institutional-grade compliance, offering yield-bearing assets like USDY and OUSG.
2. How does Ondo ensure asset security?
Collateral is audited by Ankura Trust, and smart contracts are non-custodial.
3. Can US investors use Ondo products?
Most products (e.g., USDY) are restricted to non-US users due to regulatory constraints.
👉 Explore Ondo Finance’s latest partnerships
Conclusion
Ondo Finance pioneers RWA tokenization with products tailored for institutional adoption. Its layer-1 Ondo Chain and yield-generating tokens position it as a leader in DeFi’s next evolution.
Disclaimer: This article is not financial advice. Conduct independent research before investing.
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