Ondo Finance has introduced a tool designed to move tokenized real assets between Ethereum-related networks and Solana. The announcement, disseminated through the company's official X account, marks a step towards broader cross-chain compatibility for assets such as USDY, a digital token backed by U.S. Treasury securities.
The bridge solution is based on LayerZero, a system that enables communication between blockchains. This integration allows USDY — a stablecoin pegged to the short-term yield of U.S. treasury bonds — to transition from Ethereum Virtual Machine (EVM) networks to Solana.
Ondo Finance stated that this move is part of a larger strategy to introduce tokenized stocks and similar assets into blockchains. A dedicated webpage explains the technical workings of the bridge, and a separate link is provided for more comprehensive information.
The reaction on social media followed quickly. Within seven minutes, user @susscrypto described the development as a "huge breakthrough" for the crypto market. Ben Grossman emphasized Ondo's role in connecting real assets to the blockchain.
LayerZero's official account highlighted their technology's ability to allow users to "access assets across chains," while Solana's response — the succinct "RWAs Solana" — underscored the intention of the partnership.
Additional responses included a festive "LFGrow ✨" from Collaterize and mentions of the involved parties from Stargate Finance. User @dchiapusio suggested that Ondo Finance could eventually exceed a valuation of $100 billion. A subsequent comment from May 2 by Darky hinted at a partnership with Collaterize, although details remain unconfirmed.
Ondo Finance, a decentralized finance protocol, converts traditional assets like treasury bonds into blockchain-based tokens. For example, USDY maintains a stable value by distributing the yield from its underlying treasury bonds.
By expanding USDY's reach on Solana — a blockchain known for fast and inexpensive transactions — the protocol aims to simplify the management of cross-chain assets. ETHNews analysts suggest that Solana's efficiency may attract users looking for cheaper alternatives to Ethereum-based networks.
Future plans include the expansion of tokenization to stocks, which potentially broadens the role of blockchain in traditional finance. Currently, the Ondo bridge focuses on compatibility, starting with USDY. The project positions the firm as an intermediary in asset digitization, utilizing LayerZero's cross-chain framework and Solana's technical capabilities.
Essentially, ONDO is gaining traction in the real asset tokenization (RWA) space. Recently, the project announced that Visa joined its USDG product, a tokenized income dollar, which will enhance its authority and institutional appeal. Moreover, the number of new ONDO wallet addresses grew by 390% over 24 hours in March — an on-chain metric reflecting rising demand and adoption.
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