Ondo Finance pivots to private trading network for tokenized assets
In brief
- Ondo Finance abandoned layer-1 blockchain plans for a private trading network
- Ondo Network separates execution from settlement for institutional speed and privacy
- Ondo Perps launches first, with spot markets and lending planned
From Ondo Chain to Ondo Network
Ondo Finance has abandoned plans to build a conventional layer-1 blockchain, shifting course from its February 2025 vision for Ondo Chain. The company introduced a trading network called Ondo Network after building its perpetual futures platform, Ondo Perps.
Ondo Perps is the first application using the network. The platform plans to offer tokenized assets as collateral for trading, tapping into Ondo's substantial holdings. The firm manages about $2.6 billion in tokenized U.S. Treasury products across OUSG and USDY, plus roughly $850 million in tokenized equities.
How Ondo Network Works
Ondo Network separates trade execution from settlement instead of processing every trade on a public blockchain. Orders are executed privately for greater speed, while finalized asset transfers settle on public blockchains. This hybrid approach prioritizes institutional requirements—speed and confidentiality—without sacrificing on-chain settlement finality.
The network could eventually support spot markets, lending, structured products and settlement infrastructure alongside perpetual futures. Ondo's broker-dealer obtained FINRA approval last week to launch regulated markets and services for tokenized securities, positioning the firm to scale these offerings.
Tokenization's Expanding Reach
Tokenization—the process of representing traditional assets such as stocks, bonds and funds as blockchain-based tokens—is reshaping institutional finance. Perpetual futures, once largely confined to crypto markets, are expanding to traditional assets such as stocks and commodities like oil and gold. Ondo's network architecture reflects this convergence: onchain settlement for transparency, private execution for institutional practicality.
Frequently asked questions
Why did Ondo abandon its blockchain plans?
Ondo concluded that a traditional blockchain wasn't the best tool for handling the speed and privacy institutional trading requires. After building Ondo Perps, the firm shifted to a hybrid model that separates trade execution from settlement.
What is Ondo Network and how does it work?
Ondo Network separates trade execution from settlement instead of processing every trade on a public blockchain. Orders execute privately for greater speed, while finalized asset transfers settle on public blockchains, balancing institutional speed with on-chain finality.
What assets does Ondo currently manage?
Ondo manages about $2.6 billion in tokenized U.S. Treasury products across OUSG and USDY, and roughly $850 million in tokenized equities.
