Ondo Finance Launches RWA Tokenization Platform to Bring Stocks and Bonds On-chain
Institution-focused DeFi protocol Ondo Finance has unveiled a new real-world assets (RWA) tokenization platform, Ondo Global Markets. In a post on X, the tokenized RWA issuer disclosed that its new platform brings traditional assets on-chain.
According to Ondo Finance, Ondo Global Markets (Ondo GM) will onboard stocks, exchange-traded funds (ETFs), and bonds to the on-chain ecosystem.
It said:
“Our RWA tokenization platform designed to enable onchain access to stocks, bonds, and ETFs. What stablecoins did for dollars, Ondo Global Markets will do for securities.”
The protocol noted that blockchain technology will address the investment ecosystem’s current challenges. Highlighting some of the issues, Ondo Finance mentioned limited access, platform fragmentation, hidden risks, high fees, and transfer frictions, adding that these challenges have prevented many people from accessing the capital markets.
However, it noted that its Ondo GM, which has been in the works since last year, will address these issues by enabling securities issuers to create freely transferable tokens while incorporating compliance at the distribution layer.
Ondo Finance will bring securities on-chain
Per the announcement on its blog, Ondo GM will now enable investors outside the US to gain exposure to US publicly traded securities in the same way they have access to US dollars through stablecoins. Some of those expected to benefit directly from the new platform include individual investors and traditional broker-dealers outside the US, as well as asset managers, issuers, and crypto platforms.
The Ondo Finance announcement reads:
“Ondo Global Markets brings the transparency, efficiency, and accessibility enabled by blockchain technology to institutional-grade finance
#USBitcoinReserver $BTC