Successful crypto firms are migrating from Ethereum and increasingly launching their layer-1s. Tron, BNB Chain, EOS, and many others first started on Ethereum but now operate on their respective chains. Joining them is Ondo Finance, one of the largest real-world asset (RWA) tokenization platforms.
As of 7 February 2025, Ondo Finance has a market cap of over $4.4 billion. It was one of the most actively traded tokens, only after Chainlink (LINK) in this category, according to Coingecko data.
Ondo Finance Releases Ondo Chain: What You Should Know
On X,Ondo Finance said it is launching Ondo Chain, a specialized platform. It is specifically for the fast-growing tokenization sector. The decision to launch comes after a successful 2024 where Ondo Finance emerged as a choice platform for institutions to tokenize treasuries.
Ondo Chain, the firm stated, is a novel initiative that will bridge the gap between TradFi and DeFi by accelerating the tokenization of RWAs, including treasuries, real estate, and even cash. Unlike competing solutions, Ondo Chain will offer what they describe as “institutional grade blockchain infrastructure,” which will be open to the community while also being compliant with existing laws. This approach aims to create an ideal environment for institutions and deep-pocketed investors to thrive.
Like Algorand and Ethereum, Ondo Chain will be energy-efficient and will use a proof-of-stake consensus system to validate transactions. Since it seeks to be the driving force of tokenization, the chain will be public and thus open to the community. However, as mentioned earlier, it will comply with existing laws to attract institutions looking to tap into blockchain technology and tokenize assets as they explore DeFi within regulated frameworks.
Ondo Chain will depend on pre-vetted and permissioned entities to run validator nodes. These nodes are designed to prevent front-running and MEV bots, which currently plague Ethereum and Solana. This approach is also to ensure the network is, at any time, performant without reliability hitches.
The network will also adopt a new and equally interesting system: allowing users to pay gas fees using tokenized assets on the network. The objective is to enhance user experience and improve access for institutions.
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Is Tokenization The Future? Why is ONDO Flat?
Analysts expect the industry to grow rapidly in the coming months. The pace at which USD and other fiat currencies have been tokenized by companies like Tether and Circle, for example, might provide hints. Currently, Tether, which issues USDT, has minted more than $141 billion of USDT across Ethereum, Tron, and other chains.
In January 2024, Larry Fink of BlackRock stated that the future is tokenized, and the sector could grow to command trillions.
As of February 7, data from rwa.xyz shows that Ondo Finance has tokenized over $650 million worth of United States government treasuries and bonds. Its market share has also increased, rising to 18%, and surpassing Securitize.
Even with this announcement, ONDO prices remain flat. Although in an uptrend, the token is still capped below $1.69.
If Ondo Chain finds success, prices may extend the gains seen in Q4 2024.
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