Learn about the Ondo Chain, the institutional-level public chain launched by RWA leader Ondo Finance in 5 minutes

Author: KarenZ, Foresight News

Ondo Finance has made frequent moves recently, first announcing the new tokenization framework of Ondo Global Markets, and then announced a major progress at its first Ondo Summit - the L1 blockchain "Ondo Chain" for institutional-level RWA.

Ondo Chain: The infrastructure of Ondo Global Markets

When it comes to Ondo Chain, we have to mention its close ties with Ondo Global Markets’ new tokenization framework announced by Ondo Finance two days ago. The framework aims to enable issuers to create RWA tokens that are freely transferred like stablecoins, leading financial markets toward a more open economic form.

Specifically, Ondo Global Markets (Ondo GM) is a tokenization platform that is committed to using blockchain technology to provide global investors with on-chain access to US listed securities. The platform will launch a series of securities-based tokenized assets that are paired 1:1 with underlying assets (including stocks, bonds, ETFs, etc.) and can be freely transferred outside the United States.

Ondo Global Markets will break geographical restrictions, allowing global investors to access over a thousand securities listed on the New York Stock Exchange (NYSE) and Nasdaq 24/7/365 24/7/365, covering equity, fixed income ETFs and Apple , Tesla, Uber and other companies. At the same time, the platform supports the instant minting, redemption, transfer, purchase and sales of tokenized assets, and seamlessly integrates these assets into the DeFi field, such as lending, income, derivatives, etc., forming a DeFi Lego for RWA.

Ondo Chain is the support and infrastructure of Ondo Global Markets.

What is Ondo Chain? What are its characteristics?

According to Ondo Chain, Ondo Chain promotes the large-scale use of tokenized real-world assets by combining the openness of public blockchains with the compliance and security features of license chains.

Ondo Chain’s design consultants include new members of the Ondo ecosystem, such as Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon and McKinsey, among others.

On Ondo Chain, validators are licensed, which enhances compliance and investor protection. However, the rest of the chain remains open and anyone has the right to issue tokens and develop applications. This design not only ensures compliance but also stimulates innovation.

The core highlight of Ondo Chain is its native support for RWA assets, especially the tokens issued by Ondo GM. Ondo Chain plans to support the pledge of Ondo GM tokens and other high-quality liquid assets, which not only provides security for the network but also creates profit opportunities for idle assets.

In connection with Tradfi, Ondo Chain enables seamless connection with private networks and traditional financial environments by having a select set of financial institutions run partial verification nodes. This design reduces transaction delays, prevents jump-start transactions, and provides institutions with access to their unique assets and liquidity, further enhancing the attractiveness and practicality of Ondo Chain in institutional-level applications.

At the data level, Ondo Chain has a built-in oracle mechanism, allowing verification nodes to directly publish off-chain data (such as asset prices, interest rates, market indexes, etc.), ensuring the accuracy and real-timeness of on-chain data, and reducing data manipulation and errors risk.

In addition, Ondo Chain also realizes full-chain messaging and cross-chain asset transfer through native integration of Ondo Bridge. Its decentralized verification network (DVN) provides the system with primary security guarantees and can be further enhanced with additional DVN when transaction amounts are high. More importantly, Ondo Chain supports seamless sharing of data such as KYC status, sanctions list, collateral quantity, etc., simplifying the process for developers to create full-chain applications.

summary

Ondo Chain is attracting the participation of traditional financial institutions through the RWA dedicated licensing chain, seamlessly connecting traditional financial liquidity by providing compliance and trust and preventing jump-start transactions and enhancing investor protection. Ondo Finance is promoting the vigorous development of RWA through various efforts in tokenized assets, infrastructure, ecosystems, etc.