𝗖𝗿𝘆𝗽𝘁𝗼𝗰𝘂𝗿𝗿𝗲𝗻𝗰𝗶𝗲𝘀 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱 : 𝗢𝗻𝗱𝗼 𝗙𝗶𝗻𝗮𝗻𝗰𝗲

Ondo Finance was launched in 2021, originally as a project from a group of former Goldman Sachs employees and DeFi experts. Its main goal was to bridge the gap between traditional finance and decentralised finance, offering stable and predictable yields on blockchain.

In January 2024, $ONDO was launched as a tradeable token. It is a layer 1 PoS network. There are 10 billion Ondo tokens which is a hard cap, no more can be made. There are currently 1.4 billion tokens in circulation. The releases follow a monthly linear vesting schedule that can be altered by governance.

The ONDO token is used mainly for governance. This means token holders can vote on decisions about how the protocol evolves.

𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 $ONDO 𝗱𝗼?

🌍➡️ You have some money and you want to invest it in something.

🌍➡️ Normally, you’d need to go through a bank or broker, and it could be slow, complex, and expensive.

🌍➡️ Ondo Finance puts the process on the blockchain. It creates digital tokens that represent real world investments like a token that represents $1 invested in a Treasury bond. You can buy and sell these tokens just like crypto, and they earn you passive income over time, just like the real bonds do.

🌍➡️ Ondo tokenizes real world assets (RWAs) like US Treasury Bonds, and short term investment grade corporate bonds. Real securities, where Ondo creates tokens that represent fractional ownership of those assets. The tokens are legally compliant, interest earning and redeemable in certain jurisdictions.

The use case of Ondo is enormous. Ondo Finance could theoretically tokenize individual stocks, since stocks are just another type of real world asset (RWA). The platform's model supports this kind of tokenized exposure, but the major barrier is regulatory complexity.

Ondo prioritises legal compliance, so it has so far focused on safer, more easily regulated assets like U.S Treasuries and corporate bonds, which also appeal more to institutional investors. However, in the future, it’s possible we could see tokens like “ONDO-TSLA,” representing $1 of $TSLA (Tesla Motors, Inc.) held by a licensed custodian and tradable 24/7 on-chain. For that to happen, Ondo would need to legally own or custody the stock, issue a compliant token, and either register it or secure an exemption depending on the jurisdiction. So while the infrastructure exists, offering stock pegged tokens will depend on regulatory clarity.

Because Ondo Finance operates in with extreme high potential, focusing on real world assets like U.S Treasuries and corporate bonds, its current small market cap leaves plenty of room for growth. If the demand for tokenized RWAs continues to rise and Ondo maintains its strong focus on compliance and utility, it could scale massively as institutions and individuals seek secure, yield-generating assets on-chain. Its real world use case gives it serious upside potential.

#ONDO #Cryptolinhio