"Financial innovation in the new era is not only the future of digital currency, but also the evolution of the entire financial world."
When we talk about Ondo Finance, we are actually talking about a whole new financial world, a world that is not just about digital currency, but also about the revolutionary change of bringing traditional financial assets into the blockchain.
Imagine you have some U.S. Treasury bonds, but you want to make them more useful. Not only can you convert them into digital form, but you can also trade, lend, and even trade derivatives on the blockchain, which is what Ondo does.
Now, we are not just talking about tokenization, but the digitization of the entire value chain, which means that from buying to selling, to lending and trading, everything is done on the blockchain, which brings unprecedented flexibility and convenience to investors.
Ondo does not do this in isolation, they work with large financial institutions such as BlackRock to ensure their products and services meet market needs and are widely recognized.
In today's FinTech field, DeFi (Decentralized Finance) as an emerging technology is attracting global attention.
In the development of DeFi, the tokenization of real-world assets (RWA) is seen as a disruptive innovation that can combine traditional finance with blockchain technology to provide investors with a wider range of more flexible investment options.
As an important player in the field of RWA tokenization, Ondo Finance is leading this change.
The RWA market refers to the tokenization of real-world assets (such as real estate, stocks, bonds, etc.) through blockchain technology, allowing investors to hold these assets indirectly in the form of digital assets.
At present, the scale of the RWA market is expanding rapidly, among which U.S. Treasury bonds, as a high-credit and highly liquid asset, have become one of the main driving forces leading the market growth.
According to statistics, the size of the RWA U.S. Treasury market has increased sixfold in just one year, reaching billions of U.S. dollars. The rapid development of the RWA market has attracted the attention of more and more investors and project participants, indicating that it has huge potential in the future.
As the global economic situation worsens and the Federal Reserve raises interest rates several times, investors' demand for high-quality assets such as U.S. Treasury bonds has increased.
However, investing in U.S. Treasuries still presents certain challenges, including cumbersome KYC and account opening processes.
Ondo Finance’s main competitors include Franklin Templeton, Mountain Protocol and Matrixdock
Also includes:
Talos is a platform focused on converting traditional financial assets (such as bonds, real estate) into digital form. Their goal is to improve the efficiency and transparency of traditional financial markets.
Ampnet is a platform that provides blockchain solutions focused on tokenizing physical assets such as real estate, art, and industrial equipment.
Securitize is a platform that provides digital securities solutions, dedicated to digitizing traditional assets and managing and trading them through blockchain technology.
Harbor is a platform focused on the issuance and management of digital securities. Their goal is to simplify the securities trading and management process and improve liquidity and transparency.
These competitors are all trying to solve the challenges of tokenizing real-world assets in different ways and are competing in the RWA market.
Most importantly, Franklin Templeton is a leading global asset management company. Its FOBXX product is one of the largest products in the RWA U.S. Treasury market, with high market recognition and compliance.
The returning project Ondo Finance was founded in 2021 and is committed to introducing structured financial products to the DeFi field. During this stage, they launched their first product, Ondo Vaults, and raised seed rounds of financing.
The company was founded in March 2021, focusing on the DeFi field. Ondo Vaults was launched to provide risk management options for DeFi traders.
8 seed round financing in 2021, led by Pantera Capital. Launch of LaaS service (second half of 2021)
Ondo began exploring pairing DAOs with underwriters and launched a liquidity service (LaaS) aimed at improving liquidity on decentralized exchanges.
Launch LaaS service in the second half of 2021, cooperate with NEAR, Synapse, UMA, etc. Abandon Vaults and LaaS, turn to RWA (January-February 2023)
With the compression of the DeFi market in 2022, the Ondo team abandoned Vaults and LaaS, turned to the RWA field, and began to develop the next generation of protocols. Ondo V2 launched Ondo Funds and Flux Finance, and RWA products will be launched and cooperation will be expanded in 2023.
Ondo has made significant progress in the RWA field, launching tokenized financial products USDY, OUSG and OMMF in 2023, and expanding cooperation with institutions such as Morgan Stanley.
January 2024: ONDO tokens are unlocked for circulation. After community voting, ONDO tokens will be unlocked for circulation in January 2024, and Coinbase announced that it will be included in the on-chain currency roadmap.
You can look at it to integrate tokenized cash equivalents, build cross-chain transfer and conversion tools, and improve user experience.
Expand the scope of public securities tokenization, solve liquidity and infrastructure issues, and promote further development of the RWA market.
Explore the application of blockchain in traditional financial functions, maintain institutional-grade quality standards, and lay the foundation for long-term development in the RWA tokenization field.
To ensure the security of smart contracts, it has passed audits by multiple industry organizations, including Code4rena, NetherMind and Zokyo.
Recognition by these auditing agencies provides confidence to investors
As RWA tokenization, it is constantly developing and growing. With the further maturity and development of the DeFi industry, it will provide investors with more diversified and flexible investment options and promote the widespread application of blockchain technology in the financial field.
When it comes to ($ONDO)’s potential to reach 100x, there are some key factors to consider.
A great deal of success has been achieved in the field of tokenized real-world assets (RWA)
They have launched a series of tokenized financial products, attracted the attention of investors, and established partnerships with well-known institutions such as BlackRock.
These partnerships open up more opportunities for Ono Financial and enable it to gain more recognition in the market.
With the continuous development of the RWA market and the rapid growth of the DeFi industry, industry leaders will benefit further.
As more and more assets are tokenized and brought to the blockchain, it is expected that they will become a key player in this trend.
Considering that Odno Finance’s current market capitalization is $1.15 billion, it may take some time and effort to reach a 100-fold increase in market capitalization, or $115 billion.
But this goal is entirely feasible if Odno Financial can continue to maintain its leading position in the RWA field and further expand its partnership network.
The size of the stablecoin market has grown from $20 million in 2017 to $140 billion in 2024, a 700,000% increase.
At the same time, the transfer volume of stablecoins has also shown astonishing growth, reaching $1.2 trillion in December 2023 alone, exceeding all major card networks except Visa.
This shows that stablecoins are becoming increasingly important in financial transactions. Sphere was originally designed with stablecoins at its core to enable merchants in emerging markets to make cross-border payments.
Adding USDY to the payment options expands its functionality and provides more practicality. Sphere’s collaboration with Ondo Finance will accelerate the construction of payment infrastructure and provide users with more choices and power.
(USDY is a U.S. dollar stablecoin, OUSG is a U.S. dollar time deposit security, and OMMF is a U.S. dollar market money fund. The launch of these products may mean that the financial market's demand for stable cryptocurrencies, regular income securities, and money funds is growing.)
Ondo Finance's president stresses the importance of collaboration in improving transaction efficiency and breaking down barriers to financial services
Sphere’s CTO said the partnership will accelerate their efforts to provide convenient and efficient value transfer around the world
This collaboration will provide access to powerful payment infrastructure and U.S. dollar-denominated revenue to underserved markets, advancing global financial markets.
