Ondo Finance has officially launched Ondo Chain, a Layer 1 blockchain designed to enhance institutional adoption of tokenized real-world assets (RWAs). The project aims to bridge traditional finance with decentralized finance (DeFi) by providing compliance-friendly infrastructure for tokenized securities, such as US stocks, bonds, and exchange-traded funds (ETFs).
With institutional interest growing and ONDO token price volatility, investors are closely watching how this development could impact its valuation.
Ondo Chain: Expanding the Tokenized Securities Market
Announced on February 6, 2025, Ondo Chain seeks to overcome liquidity fragmentation, reduce transaction costs, and ensure regulatory compliance for tokenized securities. Unlike fully permissionless blockchains, Ondo Chain incorporates permissioned validators, enabling financial institutions to integrate with DeFi while adhering to regulatory frameworks.
The blockchain will also support staking mechanisms for RWAs, allowing investors to earn yields while securing the network. Additionally, it will feature native omnichain bridging, ensuring seamless transfers of tokenized assets across different networks.
Institutional Backing and Industry Collaboration
Ondo Finance has secured partnerships with major financial players, including:
- Franklin Templeton
- Wellington Management
- WisdomTree
These firms are providing guidance on the development and adoption of Ondo Chain. Nathan Allman, CEO of Ondo Finance, emphasized the significance of this launch:
Trump-Backed Investment Firm Increases ONDO Holdings
On the same day as the announcement, World Liberty Financial, a DeFi platform linked to Donald Trump and his family, invested $470,000 in ONDO tokens. Blockchain data shows the firm exchanged USDC for 342,000 ONDO tokens through CoW Protocol.
This follows a previous $245,000 ONDO purchase made two months ago. The firm later transferred these tokens to Coinbase Prime, suggesting potential long-term accumulation.
Besides ONDO, World Liberty Financial has been accumulating TRX and Wrapped Bitcoin (WBTC), signaling a broader interest in blockchain-based financial markets.
ONDO Price Trends and Market Outlook
Despite the major announcement, ONDO’s price has seen short-term fluctuations, reflecting broader crypto market trends.
- Current Price: $1.298 (-3.7% in 24 hours)
- Key Resistance Levels: $1.50 → $1.64 → $1.94 → $2.10
Technical analysts believe that a breakout above $1.50 could trigger a bullish rally, with $2.10 as a potential target if momentum builds. The success of Ondo Chain’s adoption will be a key factor in determining ONDO’s long-term price trajectory.
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