Ondo Finance Launches Ondo Chain: A Layer-1 Blockchain for Institutional Real-World Asset Tokenization

Ondo Finance has unveiled its new layer-1 blockchain, Ondo Chain, designed to help institutions tokenize real-world assets (RWAs) and streamline the tokenization process for Wall Street firms. The announcement was made on February 6 at Ondo's inaugural summit in New York.

A Blockchain Tailored for Institutions

Ondo Chain aims to provide a comprehensive infrastructure for institutions looking to tokenize a wide range of real-world assets, including financial products, real estate, and commodities. The new blockchain will facilitate use cases such as prime brokerage with cross-collateralized margin for RWAs, staking of tokenized assets, and wealth management solutions.

Ondo Finance emphasized that although the platform is institution-focused, it is open to anyone who wants to issue tokens, develop decentralized applications (dApps), or participate in the network. This inclusivity ensures a broader ecosystem while maintaining a focus on institutional-grade solutions.

Strong Industry Backing and Advisory

Ondo Chain’s development is backed by notable advisory members from leading financial institutions. BlackRock, PayPal, Morgan Stanley, Franklin Templeton, and WisdomTree are among the prominent partners helping guide the blockchain's development. Additionally, Google Cloud, ABN Amro, Aon, and McKinsey have also joined the initiative, lending their expertise to build a robust and scalable network.

Chase Herro, co-founder of the Trump family’s World Liberty Financial (WLF), announced during the summit that the platform would establish a “strategic reserve” with the tokens it holds, including the native Ondo (ONDO) token. Herro’s involvement further highlights the growing interest in Ondo Chain from high-profile financial entities.

Enhanced Investor Protection with Permissioned Model

Ondo Chain’s validators will play a critical role in securing the network, with the option to stake RWAs as collateral. However, the blockchain will operate on a permissioned model to prevent issues such as miner extractable value (MEV) and front-running, which can negatively impact the market’s fairness. This structure is designed to provide best execution guarantees and enhance investor protection, making it particularly attractive to institutional users.

Although primarily designed for institutional use, Ondo Finance has emphasized that the blockchain remains open for anyone to issue tokens and participate in the ecosystem. This hybrid approach is intended to foster innovation and expansion within the growing field of RWA tokenization.

World Liberty Financial’s Strategic Reserve

World Liberty Financial (WLF), which is closely tied to the Trump family, has significantly increased its involvement with Ondo Finance. On February 6, WLF revealed plans to create a strategic reserve consisting of the tokens it holds, including ONDO tokens. The firm had previously purchased $270,000 worth of ONDO tokens on December 15, 2024, as part of a broader $45 million purchase that also included Ether (ETH) and Coinbase Wrapped Bitcoin (cbBTC).

According to Arkham Intelligence, WLF’s total crypto holdings now include approximately $35.4 million in various cryptocurrencies, signaling a growing interest in the sector. This token reserve further strengthens the collaboration between WLF and Ondo Finance, positioning the platform as a key player in the future of asset tokenization.

Looking Ahead: The Future of Ondo Chain

While Ondo Finance has not provided an official launch date for Ondo Chain, the initiative’s industry support and innovative approach suggest it could become a major player in the RWA tokenization space. By creating a secure, transparent, and efficient platform for institutions to tokenize and trade real-world assets, Ondo Chain aims to push the boundaries of blockchain technology and redefine how traditional assets are managed and exchanged.

As the financial industry continues to explore the potential of blockchain technology, Ondo Finance is positioning itself at the forefront of this evolution with the launch of Ondo Chain.