By Nermeen Nabil Khear 
The Ondo Ecosystem is stepping up its game with big-name advisors like Franklin Templeton, Wellington Management, and WisdomTree. Other notable advisors include Google Cloud, ABN Amro, Aon, and McKinsey.
These new members join industry giants like BlackRock, PayPal, and Morgan Stanley. Together, they make Ondo Chain a heavyweight contender in blockchain infrastructure.
Tackling Five Key Challenges
Tokenized RWAs have incredible potential, but they face several roadblocks. Ondo Finance is addressing five major challenges:
- DeFi Incompatibility: Traditional financial assets require features like stock splits and dividend distributions, which current DeFi platforms can’t handle.
- Liquidity Fragmentation: Managing cross-chain liquidity for tokenized RWAs is expensive and complex, and today’s bridges often pose security risks.
- Transaction Fees: High and volatile gas fees on public blockchains create uncertainty for institutions.
- Security Risks: Current blockchains rely on crypto-based staking, which isn’t ideal for RWAs during market downturns.
- Regulatory Concerns: Institutions face hurdles like compliance risks, front-running, and gas fees when using public blockchains.
1/ Today, we’re thrilled to announce Ondo Chain, our new Layer 1 blockchain purpose-built for institutional-grade RWAs.
Design advisors for the chain include new members of the Ondo Ecosystem: Franklin Templeton, Wellington Management, WisdomTree, Google Cloud, ABN Amro, Aon,… pic.twitter.com/a35GHB7OFW
— Ondo Finance (@OndoFinance) February 6, 2025
What Sets Ondo Chain Apart
Ondo Chain combines the transparency of public blockchains with the security and compliance of permissioned networks. Here are its standout features:
- Institutional-Grade Security: Validators can stake RWAs to secure the network, lowering costs and improving safety.
- Permissioned Validators: Trusted institutions will act as validators, reducing front-running and ensuring regulatory compliance.
- TradFi Connectivity: Financial institutions running some validators will bridge the gap between traditional finance and blockchain.
- Scalable Data Feeds: Validators will serve as reliable oracles, providing accurate data for RWAs.
- Omnichain Support: Ondo Chain integrates a secure, native bridge to facilitate cross-chain transactions and application development.
- Proof of Reserves: Validators verify that every tokenized RWA is fully backed, increasing transparency and reducing risk.
- Open Development: While validators are permissioned, the chain is open for developers and users to innovate.
3/ Key Features of Ondo Chain:
Ondo Chain is designed from the ground up to solve these problems and enable true institutional-scale RWAs. It combines the best aspects of public and permissioned blockchains to provide the infrastructure for institutions, and the financial…
— Ondo Finance (@OndoFinance) February 6, 2025
Bridging TradFi and DeFi
Ondo Chain is blazing a trail for institutions to adopt blockchain technology. It offers prime brokerage capabilities, cross-collateralized lending, and seamless integration of tokenized assets into DeFi. By bridging traditional finance (TradFi) with decentralized finance (DeFi), Ondo Chain opens the door for 24/7 portfolio management, stablecoin distribution, and new yield opportunities.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Ondo Chain: The Future of Institutional Tokenized Assets appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.