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ONDO Cryptocurrency Guide – Forbes Advisor Australia
Bringing institutional-grade financial products on-chain is the goal of Ondo Finance. The company uses blockchain technology to provide decentralized finance (DeFi) products and services. The main products offered by Ondo Finance include:
- Fixed return loans secured by crypto assets, using the developed Flux Finance protocol.
- Tokenized US dollar-denominated real-world assets via its OUSG, USDY, and OMMF tokens.
- The Ondo token bridge and converter, which supports cross-movement of assets.
There has been a lot of excitement about the platform’s tokenized products that allow investors to bridge the gap between traditional regulated assets and the usability of blockchain to benefit from real-time, 24/7 stock trading , without the need to use a broker.
Ondo Finance launched its first tokenized product in 2023 on Ethereum blockchain and now leverages a variety of blockchains to provide tokenized assets including Solana, Aptos, Injective, Mantle, MANTRA, Noble, Polygon and Sui.
In addition to its blockchain partners, the company’s ecosystem includes custody providers, over-the-counter (OTC) desks, liquidity venues, and service providers such as Coinbase, BlackRock, and Morgan Stanley. Its products are aimed at high-net-worth individuals and institutional investors, who must meet certain criteria and know customer requirements (KYC).
Ondo Finance tokenized RWA products include:
- OUSG, a token that enables investments in US Treasuries primarily through BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and BlackRock’s FedFund (TFDXX).
- USDY, a tokenized yield-generating note backed by short-term U.S. Treasury securities and bank demand deposits.
- OMMF, which tokenizes US government money market funds to provide a dollar substitute for settlements and collateral in the OTC trading and lending space.
The project was founded and still led by Nathan Allman, whose work history includes a finance role at Goldman Sachs. While it is essentially an asset manager specializing in tokenized digital assets and liquidity lending, the project also develops technology to support the scaling and interoperability of tokenized assets on-chain.
Data from DefiLlama shows that among major RWA protocols, Ondo Finance ranks second in terms of total value locked (TVL) with $549.92 million.