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Investing In Ondo Finance (ONDO) – Everything You Need to Know

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Ondo Finance (ONDO) is a blockchain tokenization protocol and infrastructure provider. The network streamlines bringing centralized assets onto decentralized networks and provides full programmability for Dapp developers seeking to create systems to support Real World Assets. Here's everything you need to know.

Tokenization Protocols

Tokenization refers to introducing an asset onto a blockchain. In the past, tokenization was used to bring art, music, videos, and other digital assets to the decentralized economy in the form of NFTs. NFTs enabled these tokens to represent singular assets and hold individual value.

Ondo Finance (ONDO)

Ondo Finance (ONDO)

Tokenization pivoted towards Real World Assets over the past 5 years. Real World Assets such as real estate are now becoming available in token form, bringing lots of benefits. Notably, analysts predict +$16T in financial assets from across markets to enter the blockchain space over the next ten years. As such, there is a strong demand for these services.

Directive Tokenization

Ondo Finance introduces directive tokenization to the market. This method of tokenization represents rights to assets held by Ondo GM broker-dealer. The tokens provide holders with the ability to execute a variety of tasks including settlement, trade, and hold.

What Problems Does Ondo Finance Attempt to Fix?

Ondo Finance seeks to tackle a variety of issues that have slowed tokenization efforts in the past. The protocol was designed specifically to make institutional-grade financial products and services more accessible. As such, it serves a vital role as an enterprise onramp into the blockchain space.

Lack of Liquidity

There remains a lack of liquidity in the tokenization sector. The market is still new and compartmentalized. This fragmented nature and history of tokenizing assets without deep liquidity, has left the market shallow. The network introduces several tools that deepen liquidity and interoperability while focusing on assets that can support additional markets.

For example, early tokenization platforms would focus on limited liquidity assets like private credit. This misdirected approach meant that the newly formed token didn’t have any depth to its offerings. Focusing on real-world assets with secondary markets enables Ondo Finance to create new on and off-chain opportunities.

Benefits of Ondo Finance (ONDO)

Ondo Finance introduced many benefits to the market including increased capital efficiency and improved interoperability. Ondo Finance is open and accessible to a global audience and is a public blockchain that can be examined using the blockchain explorer directly.

The network's structure makes it more akin to a messaging system that’s connected to regulated broker-dealers and custodians. The approach enables token holders to provide trade and settlement instructions while remaining compliant.

Easy Tokenization Process

It's easy to tokenize Real-World Assets on Ondo Finance. The platform enables users to lock their assets into smart contracts and issue TSLA tokens that can include compliance and transfer requirements that are ingrained in the asset for its entire life cycle.

Lack of Security

Tokenizing regulated assets requires top-notch security to avoid digital thieves. Ondo Finance has completed multiple audits and has its certificates available to the community. Third-party audits help to prevent losses by ensuring that smart contracts are secure and free from attack vectors. Notably, Ondo Finance has passed multiple audits and has never been hacked to date.

How Does Ondo Finance (ONDO) Work?

Ondo Finance supports the latest DeFi and NFT tokens, smart contracts, and decentralized assets. The platform offers high performance and programmability, making it ideal for developers and businesses. Additionally, it includes several features that deepen liquidity.

Ondo Global Markets

The Ondo Global Markets is a core product of the network. The feature provides native access to traditional securities complete with trading, clearing, and settlement venues via a blockchain solution. The Ondo GM provides exposure to exclusive markets and assets in a secure p2p manner. It also supports client orders via API, smart contract, and web app.

Ondo Bridge

The Ondo Bridge enables the platform to communicate data and value with other blockchains. The bridge is critical in the platform's open approach to the market. Ondo Finance users can leverage Ethereum, Polygon, Solana, and other top networks

Flux Finance

Onde Finance also introduced Flux Finance as a cutting-edge p2p lending protocol. This platform allows users to leverage OUSG as collateral for loans. The feature has lots of settings that enable you to create autonomous trading protocols and more.

Token (ONDO)

ONDO is the main utility token for the ecosystem. It's used to pay fees, reward users, interact with products, and participate in community governance. ONDO is a versatile asset that can be sent globally in a permissionless manner in seconds.

USYD

USYD is a bearer asset designed to act like a stablecoin albeit through different stabilization methods. This yield-bearing substitute for conventional stablecoins provides token holders with the bonus of securing full rewards from the underlying asset. Developers note this type of stable asset as a better alternative to traditional stablecoin because it creates additional value via yields.

AUG

Ondo Finance was the first network to offer a tokenized US Treasuries product. The OUSG token is a wrapped BlackRock Treasuries ETF. As such, it provides traders asset exposure with the advantages of blockchain transparency and security.

Governance

The Ondo DAO (decentralized autonomous organization) is the driving force directing the innovative efforts. This community voting mechanism enables users to stake their tokens to gain access to the proposal and voting options. Put forth potential upgrades to a vote and help to improve the ecosystem.

Tokenization of RWAs is Big Business

The growth of the RWA tokenization market has been exciting to watch. This sector has trillions in potential revenue and is now seeing the entrance of fully regulated platforms. These developments will help to increase the adoption and use of tokenized assets.

How to Buy Ondo Finance (ONDO)

Currently, Ondo Finance (ONDO) is available for purchase at the following exchanges.

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users, and over $207 billion in quarterly trading volume.

The Kraken exchange offers trading access to over 190 countries including Australia, Canada, and Europe, and is our most recommended exchange for USA residents. (Excluding New York & Washington state)

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.  Restrictions may apply, depending on location.

Ondo Finance (ONDO) – Improving the Economy via Blockchain Solutions

Ondo Finance provides several features that make it a powerful tool in the hands of savvy traders. The network empowers businesses to tokenize their assets and improve the current state of the ecosystem by deepening liquidity and adding more functionality. For these reasons, Ondo Fiance is a smart protocol to watch.

You can learn more about exciting blockchain projects here.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com