Ondo (ONDO), launched in January 2024, is the governance token of the Ondo Finance ecosystem, a decentralized finance (DeFi) protocol focused on tokenizing real-world assets (RWAs) like U.S. Treasuries. Built on Ethereum and integrated with chains like Solana, XRP Ledger, and Sui, Ondo democratizes access to institutional-grade financial products through tokens like OUSG (short-term U.S. Treasuries) and USDY (yield-bearing stablecoin). ONDO powers governance, staking, and protocol incentives, with a $7.2 billion RWA market share.

Key Features

  • RWA Tokenization: Enables tokenized U.S. Treasuries (OUSG) and yield-bearing stablecoins (USDY), bridging traditional finance and DeFi.
  • Multichain Support: Operates on Ethereum, Solana, XRP Ledger, Sui, and others, with seamless asset transfers.
  • Governance: ONDO holders shape the Ondo DAO, influencing platforms like Flux Finance.
  • Ecosystem: Includes OUSG ($693M TVL), USDY ($540M market cap), and partnerships with BlackRock and Coinbase.

ONDO Token

  • Purpose: Used for governance, staking, and incentivizing protocol participation.
  • Supply: Circulating supply of ~3.2 billion ONDO, with a max supply of 10 billion.
  • Contract Address: 0xfaba6f8e4a5e8ab82f62fe7c39859fa577269be3 (Ethereum, addable to MetaMask), tradeable via Coingecko. CMC.

Who Are the Founders of Ondo?

Ondo Finance was founded in 2022 by Nathan Allman and Justin Schmidt, based in the Cayman Islands. Allman, CEO, and Schmidt, COO, are former Goldman Sachs and Citadel executives who aim to bridge traditional finance with DeFi through RWA tokenization. The Ondo Foundation supports the ecosystem’s decentralized protocols and community governance.

What Makes Ondo Unique?

ONDO and Ondo Finance stand out for their RWA focus and institutional integration:

  • Tokenized Treasuries: OUSG offers tokenized U.S. Treasuries, accessible via Ripple’s RLUSD on XRP Ledger.
  • Flux Finance: A lending platform governed by ONDO holders, enabling risk-isolated, fixed-yield loans.
  • TradFi Partnerships: Collaborations with BlackRock, Morgan Stanley, and J.P. Morgan enhance credibility and liquidity.
  • Ondo Chain: A dedicated blockchain for RWA settlement, tested with Chainlink and J.P. Morgan’s Kinexys.

ONDO Network Upgrades (2025)

  • XRP Ledger Integration: OUSG launched on XRP Ledger, enabling minting/redemption via RLUSD, boosting institutional access.
  • Ondo Chain Testnet: Collaborated with Chainlink and J.P. Morgan for bank settlement integration, enhancing RWA efficiency.
  • USDY Custody: Zodia Custody now supports USDY, with OUSG support planned, targeting institutional investors.
  • Community Sentiment: X posts are mixed, with bullish signals from partnerships but bearish price concerns after a -18% monthly drop.

How Is ONDO Secured?

ONDO and the Ondo Finance ecosystem are secured through:

  • Ethereum PoS: Leverages Ethereum’s proof-of-stake for primary security.
  • Multichain Security: Inherits security from chains like Solana and XRP Ledger for cross-chain assets.
  • Ondo DAO: ONDO holders govern risk parameters and protocol upgrades, ensuring decentralization.
  • Smart Contract Audits: Flux Finance and other platforms undergo regular audits to mitigate vulnerabilities.

Conclusion

Ondo (ONDO) powers a leading RWA tokenization platform, bridging DeFi and traditional finance with tokenized Treasuries and stablecoins. Its multichain integration, institutional partnerships, and governance model position it as a DeFi innovator.