Ondo Finance has emerged as a central player in the rapidly growing sector of real-world asset (RWA) tokenization. Following the February 2025 launch of Ondo Chain—a dedicated Layer 1 blockchain purpose-built for real-world assets —the project is doubling down on its mission to bring institutional-grade financial assets onto the blockchain.
The mainnet launch of Ondo Chain in February 2025 marks a strategic expansion of Ondo’s platform. The network is now live as a Layer 1 blockchain specifically optimized for real-world asset tokenization.
Ondo Chain is EVM-compatible, allowing developers to deploy Ethereum-based smart contracts seamlessly while benefiting from native support for permissioned validators and RWA staking. This new infrastructure complements Ondo’s suite of tokenized products like USDY and OUSG, which have helped the project surpass $1 billion in Total Value Locked (TVL).
Overview
Ondo is a decentralized finance (DeFi) platform and infrastructure provider that focuses on the tokenization of real-world assets such as U.S. Treasuries, bonds, and potentially public equities. Tokenization refers to the process of converting ownership rights of traditional assets into digital tokens on a blockchain, enabling easier trading, fractional ownership, and 24/7 market access.
Originally built on Ethereum, Ondo has expanded across multiple blockchain networks and now operates its own Layer 1 blockchain—a base-level blockchain network that runs independently and doesn’t rely on another chain for its operations. As a Layer 1, Ondo Chain is a standalone network that processes transactions independently, unlike Layer 2 solutions, which rely on existing blockchains like Ethereum for security.
Ondo sits at the intersection of traditional finance (TradFi) and DeFi, offering regulated, yield-generating products to both institutional and retail investors outside the United States.
Key Features
Tokenized U.S. Treasuries
Ondo’s flagship products, USDY and OUSG, provide tokenized exposure to short-term U.S. Treasury securities. USDY, collateralized by Treasuries and bank deposits, is accessible to non-U.S. investors and serves as a yield-bearing alternative to stablecoins. OUSG, available to accredited investors, integrates with traditional funds like BlackRock’s BUIDL and offers daily yield distribution and 24/7 minting and redemption.
Ondo Chain
Launched in February 2025, Ondo Chain is designed specifically for the compliant tokenization and management of real-world assets. Unlike general-purpose blockchains, Ondo Chain incorporates:
- Permissioned Validators: Entities such as regulated financial institutions secure the network.
- RWA Staking: Validators can stake tokenized real-world assets rather than volatile native tokens.
- Enshrined Oracles: Built-in data feeds provide verified off-chain information like asset prices and proof of reserves.
- Omnichain Bridging: Native support for cross-chain transfers to networks such as Ethereum, Solana, and Cosmos.
- Corporate Action Support: Enables operations like stock splits and dividend payouts directly on-chain.
These features focus on institutional compliance, security, and usability, setting Ondo Chain apart from general-purpose Layer 1 networks.
Ecosystem Tools
Ondo’s Bridge and Token Converter tools enhance interoperability and ease of use, supporting token transfers across chains and conversions between Ondo’s stable instruments.
Ecosystem Activity
Ondo has seen rapid ecosystem growth:
- TVL exceeded $1 billion, reflecting rising demand for tokenized Treasuries.
- Partnership with Mastercard allows business users on the Mastercard Multi-Token Network to earn yield on idle cash via OUSG.
- Multi-chain integrations with Ethereum, Solana, Aptos, Arbitrum, Polygon, Cosmos, and others.
- Collaborations with Plume Network and Assetera support broader RWA adoption in Europe and across modular Layer 1 ecosystems.
- DeFi integrations with protocols like Thala (Aptos), Helio and Sphere (Solana), and Arbitrum DAOs expand utility for USDY.
- Ondo currently maintains 98 active ecosystem partnerships across custody, trading, and infrastructure verticals.
Funding and Backers
Ondo Finance has raised between $24 million and $46 million across several funding rounds:
| Round Type | Date | Amount | Notable Investors |
|---|---|---|---|
| Seed Round | June 2021 | $4 million | Pantera Capital, Digital Currency Group, CoinFund |
| Series A | Q2 2022 | $20 million | Founders Fund, Coinbase Ventures, Tiger Global, GoldenTree |
| Public Sale R1 | May 2022 | $3 million | CoinList participants |
| Public Sale R2 | May 2022 | $5.4 million | CoinList participants |
The project has received backing from major names in both crypto and traditional finance, including BlackRock, Morgan Stanley, and WisdomTree, signaling strong institutional interest.
Token Utility
The ONDO token serves multiple roles:
- Governance: ONDO holders vote on protocol parameters, upgrades, and treasury decisions.
- Staking: ONDO may be staked on the Ondo Chain to secure the network, particularly using RWA assets.
- Collateral and Fee Use: The token may be used within DeFi protocols for collateral and potentially as a gas fee on Ondo Chain.
Initial supply is capped at 10 billion, with distribution designed for long-term growth:
| Allocation Category | % of Total Supply | Vesting Schedule |
|---|---|---|
| Ecosystem Growth | 52.1% | 24% unlocked at launch, vesting over 5 years |
| Protocol Development | 33% | 1-year cliff, monthly vesting over 3 years |
| Private Sales | 12.9% | 25% unlocked at launch, vesting over 3 years |
| Community Sale | 2% | Mostly unlocked |
Airdrop Participation
While no active airdrop program is currently available, Ondo has previously run a Points Program to reward users holding USDY and engaging in governance. Details can be found on the Ondo Foundation Points Page.
Why It Matters
Ondo Finance is positioned to play a central role in the evolution of decentralized finance by tackling one of the space’s most pressing challenges: the on-chain integration of traditional assets. With the launch of Ondo Chain and growing institutional partnerships, the project is creating infrastructure that merges the trust and regulation of TradFi with the transparency and composability of blockchain.
Its focus on compliance, cross-chain operability, and real-world asset utility makes it a foundational project in the emerging RWA sector—one that could shape how trillions of dollars in traditional assets are brought into the digital economy.
For more information, visit ondo.finance, explore their documentation, or follow their updates on X.
