Ondo Finance: The Rise of Real -World Assets!
Stablecoins represent a big step in the tokenization of real-world assets (RWAs), which hold huge potential with a total value exceeding TRILLIONS of USD’s in traditional assets. Ondo is seizing this opportunity by tokenizing assets such as US Treasuries like OUSG, which invests in BlackRock’s BUIDL. To check out Ondo Finance and its role in setting up RWA’s into decentralized finance (DeFi), explore below for more information.
What is Ondo Finance?
Ondo Finance leverages blockchain technology to tokenize real-world assets (RWA). By tokenizing assets like US Treasuries, Ondo aims to democratize access to institutional-grade financial products and services.
What are some of Ondo Products?
Ondo Finance has already deployed several RWA products, with the three heavyweights being USDY, Ondo’s Funds, and Flux Finance, which has already been sold to the Ondo Foundation.
Today, we will highlight one of the flagship products. USDY is a yield-bearing stablecoin alternative secured by short-term US Treasuries. In contrast to USDT or USDC, USDY differs because its holders receive yield generated from the underlying assets.
One of the key distinctions between USDY and stablecoins lies in the yield aspect. Holders of USDC or USDT maintain a fixed amount in their wallets, whereas USDY holders receive yields.
To buy USDY, investors don’t need to fulfill the same strict requirements of OUSG. USDY is available to non-US investors, without the need to be an accredited investor, as long as investors fulfill the onboarding process such as Know Your Customer (KYC/B) and Anti-Money Laundering (AML) checks.
Lastly, USDY is native to the Ethereum, Mantle, Sui, and Solana networks.
Advantages of Ondo Finance:
- Access to Traditional Assets: Enables participation in traditional asset investments through tokenization, previously challenging within DeFi.
- Transparency and Efficiency: Leveraging blockchain technology ensures transparency and reduces settlement risks.
- Tokenization for Liquidity: Asset tokenization facilitates liquidity access and simplifies ownership between investors.
- Yield: Holders of USDY can generate yields.
ONDO functions as the governance token for the Ondo DAO. It allows token holders to collectively determine the future of the Ondo DAO.
ONDO token holders are entrusted with shaping the future of the Ondo DAO so that it continues to pursue its mission to democratize access to institutional-grade finance. The Ondo DAO gives ONDO holders specific rights pertaining to Flux Finance, which is currently governed by the Ondo DAO.
This rise of the ONDO token brought Ondo to HTX as the leading real-world asset protocol by market capitalization. As of April 15, 2024, the ONDO token price reached 0.86 securing a market capitalization nearing $1,251,801,639 positioning Ondo at the 81th spot on Coingecko.
What’s next?
Ondo Finance is a project that offers real-world asset tokenization. Focusing on institutional-grade financial products and services, Ondo introduced products such as OUSG, and even recently completed a transaction with the BlackRock BUIDL fund, while the ONDO token increased that same day upwards to 10% within 24hrs.
While Ondo Finance opens the door to investing in traditional assets in a DeFi environment, the platform still faces several challenges. These include complex regulatory issues, limited investor access to OUSG and OMMF assets, and the need to educate users on product usage and more.
How can you buy Ondo on HTX?
- Create a HTX account
- Deposit USDT on HTX
- Go to the USDT/ONDO trading pair here.
- Click buy and fill in the amount you want.
- Now you have ONDO!
That wraps up this quick overview of ONDO Finance. Now, what’s your favorite RWA token right now and what should we cover next ? Let us know in our official HTX Telegram and join our community today!
Source : OndoFinance , Finance Report, & CoinLive
