This article examines the asset tokenization mechanism of Ondo Finance, which is based on stable and low-risk assets such as US Treasury bonds, with special attention to the legal and technical nuances of the process.
Asset Selection
Ondo Finance uses US Treasury bonds and short-term bonds as foundational assets. These assets provide a high level of security and predictable returns, meeting regulatory requirements.
Tokenization Mechanism
The tokenization process involves several steps: asset acquisition, legal structure establishment, token issuance, and circulation mechanism design. By utilizing the ERC-20 standard, Ondo ensures token liquidity on Ethereum and compatible networks.
DeFi Integration Strategy
The Ondo Finance ecosystem extends beyond tokenization, incorporating the integration of tokenized assets with DeFi protocols to provide liquidity and accessibility across a wide range of investors.
Ondo Finance is building an effective asset tokenization mechanism that can operate efficiently within existing financial regulations and integrate into decentralized financial ecosystems.
