The post Ondo Finance Unveils New Framework for Tokenizing RWAs appeared on BitcoinEthereumNews.com.

Ondo Finance revealed an update to its real-world asset (RWA) tokenization platform, Ondo Global Markets (Ondo GM). The company aims to revolutionize access to stocks, bonds, and ETFs (exchange-traded funds) by bringing them on-chain. This mirrors the liquidity and accessibility that stablecoins have provided for fiat currencies. Ondo Finance Unveils Ondo GM In a statement shared on X (formerly Twitter), Ondo Finance emphasized that the traditional investment ecosystem is riddled with inefficiencies. It cited high fees, limited access, transfer frictions, and hidden risks, which have hindered market participation and innovation for decades. With Ondo GM, the company seeks to address these issues. It will leverage blockchain technology to create a more transparent and efficient financial market. “When we first began thinking about how to tokenize exposure to publicly traded securities, we knew that the tokens should have the same liquidity as the underlying assets,” Ondo Finance stated. Initially, the company envisioned a model where tokens represented client instructions at traditional broker-dealers within a fully permissioned system. However, after engaging with key stakeholders—including developers, traditional finance (TradFi) partners, and government officials—it became clear that a more open and accessible design was necessary. Ondo GM’s new framework will enable issuers to create tokens with stablecoin-like transferability. This mechanism will ensure liquidity while embedding compliance and security measures within the distribution layer. This paradigm shift could democratize financial markets by reducing fees, increasing accessibility, and eliminating transfer frictions. Ondo Finance’s latest announcement cements the company’s position as a leader in the RWA tokenization space. Ondo is the fourth-largest protocol (excluding stablecoins) in total RWA value, with over $637 million in assets. The overall RWA sector thrives, surpassing $17 billion in total value. RWA Protocols By Total Value. Source: rwa.xyz This milestone follows Ondo Finance’s recent announcement of plans to launch a tokenized US Treasury…

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Filed under: News - @ February 5, 2025 6:20 am