GuShiio.com Ondo Chain combines the openness of public blockchain with the compliance and security features of licensed networks to drive large-scale adoption of RWA.
Author: KarenZ, Foresight News
Ondo Finance has taken frequent actions recently. It first announced the new tokenization framework of Ondo Global Markets, and then announced a major development at its first Ondo Summit-the L1 blockchain “Ondo Chain” for institutional RWA.
Ondo Chain: The infrastructure of Ondo Global Markets
When it comes to Ondo Chain, I have to mention its close connection with the new tokenization framework of Ondo Global Markets announced by Ondo Finance two days ago. The framework aims to allow issuers to create freely transferable RWA tokens like stablecoins, leading financial markets towards a more open economic form.
Specifically, Ondo Global Markets (Ondo GM for short), as a tokenization platform, is committed to using blockchain technology to provide global investors with on-chain access to U.S. listed securities. The platform will launch a series of security-based tokenized assets that are paired 1:1 with underlying assets (including stocks, bonds, ETFs, etc.) and can be freely transferred outside the United States.
Ondo Global Markets will break down geographical restrictions and give global investors uninterrupted 24/7/365 access to more than a thousand securities listed on the New York Stock Exchange (NYSE) and NASDAQ, covering equity, fixed income ETFs, and stocks of companies such as Apple, Tesla, and Uber. At the same time, the platform supports the instant casting, redemption, transfer, purchase and sale of tokenized assets, and seamlessly integrates these assets into the DeFi field, such as lending, income, derivatives, etc., to form DeFi Lego for RWA.
Ondo Chain is the support and infrastructure of Ondo Global Markets.
What is Ondo Chain? What are the characteristics?
According to Ondo Chain’s official description, Ondo Chain promotes the large-scale use of tokenized real-world assets by combining the openness of public blockchain with the compliance and security features of the licensing chain.
Ondo Chain’s design consultants include new members of the Ondo ecosystem such as Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon and McKinsey.
On Ondo Chain, validators require licensing, enhancing compliance and investor protection. However, the rest of the chain remains open and anyone has the right to issue tokens and develop applications. This design not only ensures compliance, but also stimulates innovation vitality.
The core highlight of Ondo Chain is its native support for RWA assets, especially the tokens issued by Ondo GM. The Ondo Chain program supports the pledge of Ondo GM tokens and other high-quality liquid assets, which not only provides security for the network, but also creates revenue opportunities for idle assets.
In connection with Tradfi, Ondo Chain enables seamless connectivity to the Private Cloud and traditional financial environment by having a select group of financial institutions run partial verification nodes. This design reduces transaction delays, prevents rushing transactions, and provides institutions with access to their unique assets and liquidity, further enhancing the appeal and usefulness of Ondo Chain in institutional applications.
At the data level, Ondo Chain has a built-in oracle mechanism that enables verification nodes to directly publish off-chain data (such as asset prices, interest rates, market indices, etc.), ensuring the accuracy and real-time nature of on-chain data, and reducing data manipulation and error risk.
In addition, Ondo Chain also enables full-chain messaging and cross-chain asset transfer through native integration with Ondo Bridge. Its decentralized verification network (DVN) provides primary security for the system and can be further enhanced with additional DVN at high transaction amounts. More importantly, Ondo Chain supports the seamless sharing of data such as KYC status, sanctions lists, and collateral quantities, simplifying the process for developers to create full-chain applications.
summary
Ondo Chain is attracting the participation of traditional financial institutions through a dedicated RWA licensing chain, seamlessly connecting traditional financial liquidity by providing compliance and trust and preventing rushing transactions and enhancing investor protection. Ondo Finance is promoting the vigorous development of RWA through various efforts such as tokenization assets, infrastructure, and ecosystems.
