Ondo Finance has just announced their latest breakthrough, Ondo Global Markets, a platform that specifically addresses liquidity challenges in Real World Assets (RWA) . The platform integrates all publicly traded securities onto the blockchain , allowing direct access to the liquidity of traditional stock exchanges, including major exchanges such as Nasdaq, NYSE, and LSE.
Lack of historical liquidity has been a major obstacle to widespread adoption of RWA. Understanding this, Ondo Finance seeks to change the landscape by tokenizing assets that already have high liquidity, so that these assets can be used as collateral suitable for decentralized finance (Decentralized Finance - DeFi) applications.
One of the key achievements of Ondo Finance's previous initiatives was OUSG, the world's first tokenized US Treasury product, which leveraged the Blackrock Treasuries ETF. However, challenges remain, especially in aligning OUSG's liquidity needs with its underlying assets such as SHV.
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Tokenization Directive: Ondo Global Markets Innovation
To overcome this, Ondo Global Markets introduced "Directive Tokenization", a concept that redefines the function of tokens as an authoritative messaging system. The platform involves traditional securities broker-dealers issuing Directive Tokens, building a Blockchain Programming Interface (BPI) for seamless communication between broker-dealers and the blockchain.
Ondo GM enables two-way communication, so broker-dealers can write to the blockchain and trigger actions based on on-chain events. This innovative approach increases liquidity by streamlining the tokenization of thousands of securities without the need to rebuild liquidity for each new token.
The Broad Impact of Ondo Global Markets
Ondo Global Markets is a cryptocurrency trading platform that offers various features and services to traders and investors. The platform's potential applications are broad, ranging from prime brokerage services for institutional investors to facilitating retail users' efficient access to institutional-grade services.
Ondo Global Markets brings a fundamental shift in RWA tokenization, offering a scalable and liquidity-driven solution to reshape the future of decentralized finance.
The impact of Ondo Global Markets may vary depending on various factors, but in general, here are some possible impacts:
1. Access to Global Markets
Ondo Global Markets can provide traders with access to participate in cryptocurrency trading on global markets. This allows traders to expand their portfolio and access various types of digital assets from around the world.
2. Liquidity
Trading platforms like Ondo Global Markets can increase the liquidity of the cryptocurrency market by providing a platform that allows traders to buy and sell digital assets easily. This can help in reducing spreads and increasing the ability to execute trades at better prices.
3. Increased Adoption
The presence of Ondo Global Markets and similar trading platforms could help increase cryptocurrency adoption by providing a more user-friendly infrastructure for investors. This can help in increasing awareness and interest in cryptocurrencies as a whole.
4. Ecosystem Growth
Ondo Global Markets can help in facilitating the growth of the cryptocurrency ecosystem by providing a platform for trading, investment and innovation. This can help in encouraging the development of new projects, increasing market liquidity, and providing opportunities for collaboration between cryptocurrency projects.
5. Increased Regulation and Security
As platforms like Ondo Global Markets grow, there will likely be an increase in regulations and security standards in the cryptocurrency industry. This can help protect investors and increase confidence in the cryptocurrency market as a whole.
6. Effect on Price
Ondo Global Markets can also have a direct impact on the price of certain digital assets. Events or announcements related to this or other trading platforms may affect the prices of these assets in a significant way.
Also Read: Ondo Finance (ONDO) Price Prediction, Will It Rise? Check out the analysis here
More Details about RWA
Real World Asset (RWA) is a term that refers to physical or real assets in the real world that have economic value. These are assets embedded in the real world, such as property, infrastructure, commodities, or business projects that operate outside the digital ecosystem.
In a financial context, RWA is often used to distinguish between digital or financial assets (such as cryptocurrencies or other financial instruments) and assets that are directly related to the real world. RWAs have physical or tangible characteristics that differentiate them from digital assets, which often have no physical representation associated with them.
Examples of RWAs include:
1. Property
Homes, apartments, office buildings, or other commercial properties are common examples of RWAs. The value of the property is based on location, physical condition, market demand, and other factors.
2. Infrastructure
Toll roads, bridges, airports, power plants, and other public infrastructure are examples of RWAs that are important in the economy. This infrastructure has intrinsic value because it provides benefits to society.
3. Commodities
Gold, silver, oil and other agricultural products are examples of RWA in commodity form. The value of these commodities is often influenced by global supply and demand as well as geopolitical factors.
4. Business Project
Investments in business projects such as manufacturing, agricultural, or technology companies are another form of RWA. The value of this business project is based on operational performance, growth potential, and projected future profits.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH ), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
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Types and List of the Best Crypto Real World Assets
DISCLAIMER : This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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