Ondo Finance

What is Ondo Finance?

Ondo Finance is pioneering the tokenization of real-world assets (RWAs), bridging the gap between traditional finance and crypto. Through its industry-leading platform, Ondo Global Markets, users outside the U.S. can access tokenized versions of publicly traded U.S. stocks and ETFs, including shares of companies like Apple (AAPLon), Tesla (TSLAon), and Nvidia (NVDAon), as well as index funds like the S&P 500 (SPYon).

Each tokenized asset on Ondo Global Markets is a digital token that reflects the economic performance of a real stock or ETF. It mirrors the total return of the underlying asset, that means both price movements and reinvested dividends (after applicable taxes). In other words, you get the same economic exposure to a stock like Apple or Tesla as you would in traditional finance, but now fully onchain.

Ondo tokens are fully backed by the real assets they represent and offer institutional-grade investor protections, which are held securely by licensed U.S. custodial broker-dealers. This gives them deep liquidity and ensures that prices stay closely aligned with real-world markets. You can buy and sell these tokenized assets directly from your Blockchain.com DeFi Wallet, just like you would trade other onchain tokens.

Why tokenized stocks matter

Tokenized stocks are one of the most exciting innovations in crypto right now. They take familiar assets from traditional finance, like shares of major companies and make them available on blockchain networks.

Here’s why this is important:

• Global access: Traditionally, investing in U.S. stocks has been limited by geography, regulation, or high minimums. Tokenization makes it possible for people around the world to gain exposure to these assets.
• 24/7 trading: Unlike traditional markets that close each day, tokenized assets can be traded onchain anytime, anywhere, just like other crypto tokens.
• Lower barriers: You can invest smaller amounts, often with just a few dollars, making global investing more inclusive.
• Transparency: Everything lives on the blockchain, meaning you can verify transactions and holdings in real time.
• Faster settlement: Buying and selling happens almost instantly onchain, no waiting days for trades to clear.

Much like how stablecoins made the U.S. dollar accessible worldwide, tokenized assets are now doing the same for stocks and ETFs.

How Ondo Finance Global Markets works

Ondo’s system takes publicly traded assets and represents them as digital tokens on blockchain networks like Ethereum. Here’s how it works:

• Asset Backing: For every Ondo tokenized stock and ETF (like AAPLon and SPYon), there’s a real share of that stock/ETF held by a regulated U.S. broker-dealer.
• Token Creation: Ondo issues a digital token that tracks the price and performance of the real stock.
• Reinvested Dividends: When the real stock pays dividends, Ondo reinvests them automatically, increasing the token’s value over time.
• Trading: You can buy, sell, or hold these tokens through your Blockchain.com DeFi Wallet, just as you would with other cryptocurrencies.
• Liquidity: Ondo’s model taps into the liquidity of traditional equity markets, ensuring prices are efficient and reflective of real-world trading activity.