Ondo Use Blockchain as Middleware for Traditional Securities Trading

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Bittime - Ondo Finance is a DeFi project offering some of the leading tokenized US treasury products. They have introduced new solutions that take advantage of the liquidity of traditional financial markets.

Ondo Global Markets will issue tokens representing ownership of securities, while the assets themselves will be held in traditional custody services. While implementation details have not been publicly announced, the tokens will be traded on-chain, while instructions such as transfers will be sent back to broker-dealers and custodians to be executed off-chain.

Nathan Allman and the Tokenization Experiment

Nathan Allman, founder and CEO of Ondo Finance, is excited to lead experiments in tokenization. “We are very focused on enabling these public securities to be used in on-chain financial systems,” he told The Defiant. 

Allman gives the example of using securities as collateral as a potential use case for this new form of tokenization.

With Ondo Global Markets, settlement, the time period in which trades are settled, will still function the same as traditional securities, Allman said. “It's just that there's a 24/7 on-chain abstraction for that.” Current settlement for US securities follows a “T+2” model, meaning it takes two business days for a trade to be considered final.

Tokenized Securities: The Holy Grail in the Blockchain Space

Tokenized securities have long been the holy grail in the blockchain space . Entrepreneurs have experimented with various models over the years with varying degrees of success. Tokenized US Treasuries have gained the most traction since 2022 as interest rates rose to their highest level in two decades.

With projects like Superstate, Mountain Protocol, and even investment giant Franklin Templeton operating in the space adjacent to Treasuries, an untapped market may lie in accessing other securities.

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Ondo Expansion and ONDO Token Launch

Ondo launched its tokenized treasury product on Ethereum in January 2023. Since then, the project's flagship product, OUSG, which invests in US Treasuries via a BlackRock ETF, has reached a market capitalization of $120.6 million, according to rwa.xyz. Recently, Ondo expanded its offerings to other blockchains such as Aptos and Sui. The project also released ONDO tokens in January.

Allman declined to provide further comment on the potential infrastructure supporting what the project calls a “directive tokenization model.” However, it's worth noting that less than a month after Ondo launched its first product last year, the project launched Flux Finance, a lending platform for new tokenized Treasuries.

Additional Information about Ondo Finance (ONDO)

Ondo Finance (ONDO) has been recognized as a revolution in finance with the tokenization of real assets. By introducing unique tokenized products, Ondo Finance promises broader access to traditional financial instruments through blockchain technology. 

The ONDO token serves as the governance token for the ONDO DAO, which oversees changes to Flux Finance. In January 2024, ONDO governance token holders voted to unlock a small portion of the tokens traded on the market today. Of the total supply of 10 billion, only 14% is in circulation, with the remaining tokens to be released annually over 5 years.

Ondo Finance has also announced its expansion plans into the Asia Pacific region, demonstrating its commitment to becoming a key player in the global crypto market. To lead this expansion, Ondo Finance has appointed Ashwin Khosa as Vice President of Business Development for Asia Pacific. 

Ondo Finance has launched several tokenized products that provide exposure to US-based assets, such as OUSG, OMMF, and USDY, offering investors the opportunity to get involved in asset classes such as US Treasuries and money market funds.

How to Buy ONDO Tokens on Bittime

You can buy and sell ONDO tokens in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappbeti. ONDO is available on Bittime with ONDO IDR pairing .

To be able to buy ONDO/IDR tokens 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 Bittime assets is IDR 10,000. After that, you can make ONDO purchases in the application. Learn a more complete guide on how to buy ONDO on Bittime.

Monitor the price chart movements of Ondo Finance (ONDO), Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime. 

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DISCLAIMER : This article is informational in nature and is not an offer or invitation 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.