Ondo Finance has announced the launch of Ondo Chain, a new Layer 1 blockchain aimed at bridging traditional and decentralized finance.
Key Challenges Addressed by Ondo Chain
Ondo Finance has identified several barriers to scaling tokenized securities on blockchain networks. These include DeFi incompatibility with public securities, liquidity fragmentation across blockchains, high and unstable transaction fees, security concerns in cross-chain bridging, and institutional hesitation due to regulatory concerns. "Financial markets are overdue for an upgrade," said Nathan Allman, CEO of Ondo Finance.
Solutions to Overcome Challenges
Ondo Chain introduces a hybrid approach that combines the openness of public blockchains with the security and compliance of permissioned chains. Validators on Ondo Chain can stake high-quality RWAs rather than volatile cryptocurrencies, enhancing network security. Permissioned validators eliminate malicious MEV strategies and front-running risks.
Benefits of Real-World Asset Tokenization
Ondo Chain offers benefits such as global accessibility, reduced transaction costs, and stronger institutional participation. Built-in compliance measures facilitate trust in DeFi, enabling traditional assets to integrate seamlessly into lending, borrowing, and staking protocols.
The launch of Ondo Chain marks a new phase in real-world asset tokenization, providing a unique combination of advantages over existing blockchain networks and traditional financial systems.
