Ondo

Ondo Finance is a platform that bridges traditional financial assets with public blockchain infrastructure through the tokenisation of Real-World Assets (RWAs). It was established to address inefficiencies and access barriers in traditional finance (TradFi) by combining regulated financial instruments with decentralised ledger technology. Ondo’s structure includes a financial arm, which manages tokenised funds, and a technology arm that builds the underlying DeFi protocols and blockchain infrastructure.

The project's core objective is to offer institutional-grade financial products on-chain. This involves issuing tokens backed by familiar financial instruments—such as U.S. Treasuries and money market funds—while maintaining regulatory compliance and ensuring usability across decentralised systems. Ondo Finance has built out a diverse product suite that reflects this mission:

• OUSG (Ondo Short-Term U.S. Government Bond Fund): A tokenised fund backed by short-term U.S. Treasuries and institutional money market funds, including BlackRock’s BUIDL. It provides daily yield, supports instant minting and redemptions in USDC, and traditional redemptions in USD. Available to accredited investors under Regulation D in the U.S., it is deployed on Ethereum, Polygon, and Solana.

• USDY (Ondo U.S. Dollar Yield Token): A tokenised note secured by short-term U.S. Treasuries and bank deposits, structured as debt issued by a bankruptcy-remote entity. It is designed for non-U.S. investors and offers daily yield with on-chain transferability after a hold period. It is available across Ethereum, Solana, Mantle, and integrated into the Cosmos ecosystem via Noble.

• OMMF (Ondo Money Market Fund): A tokenised money market fund combining the price stability of stablecoins with yield distribution. Targeted at institutional settlement and OTC use cases, it allows redemptions in fiat and stablecoins while maintaining a $1 peg. It is issued on Ethereum and integrates with on-chain financial infrastructure.

• Ondo Chain: A Layer 1 blockchain purpose-built for RWAs, featuring permissioned validators (typically regulated institutions), enshrined oracles, native cross-chain bridging, RWA staking, and gas payments in RWAs. It is designed to meet the operational and compliance requirements of financial institutions.

• Flux Finance: A decentralised lending protocol governed by the Ondo DAO, allowing users to lend or borrow stablecoins against tokenised assets such as OUSG. It enables RWAs to be used as composable collateral within DeFi.

• Ondo Global Markets (OGM): A service enabling access to tokenised representations of public securities like stocks and ETFs. These tokens function as messaging instructions for regulated custodians, with the underlying assets held in traditional brokerage accounts. This model allows scalable tokenisation across thousands of listed securities.

Ondo’s ecosystem also includes rOUSG (a rebasing version of OUSG) and fTokens used in Flux Finance. The platform is integrated with institutions including BlackRock, J.P. Morgan (via Kinexys), and PayPal. Custodial and compliance partners include Ankura Trust, Komainu, and Copper. Ondo's products operate across multiple blockchain networks to ensure broad interoperability.

Ondo Finance is one of the leading platforms in the RWA tokenisation sector, which is increasingly recognised as a way to bring real-world financial instruments onto public blockchains. By May 2025, Ondo reported over $1.25 billion in Total Value Locked (TVL), rising from $192 million in January 2024. This growth reflects increasing demand for tokenised, yield-generating assets—especially in relation to U.S. Treasuries.

In contrast to retail-focused DeFi platforms, Ondo targets institutional participants through a compliance-first approach. Each product is structured for specific legal and regulatory environments: OUSG under Regulation D (U.S. accredited investors), USDY under Regulation S (non-U.S. investors), and OMMF for global stablecoin holders. Ondo Chain addresses infrastructure limitations through validator-level KYC and embedded proof-of-reserve mechanisms.

Ondo’s cross-chain deployment strategy allows its products to function within decentralised ecosystems while maintaining links to traditional financial infrastructure. With integrations across over 100 entities—including wallets, DeFi protocols, custodians, and asset managers—Ondo positions itself as a foundational layer for institutional RWA adoption.