Ondo Finance, a leading player in tokenized real-world assets, announced the launch of Ondo Chain, a Layer 1 blockchain network designed to bridge traditional and decentralized finance.
Why Was Ondo Chain Created?
Ondo Finance identified several barriers to scaling tokenized securities, including DeFi incompatibility with public securities, liquidity fragmentation, high transaction fees, security issues, and regulatory concerns for institutional participants. Ondo Chain aims to address these by providing a unified ecosystem for cross-chain interoperability.
How Ondo Chain Addresses Infrastructure Challenges
Ondo Chain introduces a hybrid approach, combining the openness of public blockchains with the security and compliance of permissioned networks. Validators can stake high-quality tokenized assets to reduce risks tied to cryptocurrency volatility. The system aims to stabilize transaction fees and avoid front-running by working exclusively with regulated institutions.
Prospects for Tokenization of Real-World Assets
Ondo Chain offers significant benefits for real-world asset tokenization markets, including global 24/7 access, lower transaction costs, increased institutional participation, robust security, and seamless DeFi integration. This makes the network particularly appealing for organizations that are risk-averse toward crypto-assets.
With the launch of Ondo Chain, Ondo Finance paves the way for the integration of institutional capital into blockchain, offering modern tools for more secure and efficient handling of tokenized assets.
