Ondo Finance

A blockchain-based platform tokenizing real-world assets like U.S. Treasuries and equities to provide institutional-grade financial products onchain.

What is Ondo Finance?

Ondo Finance is a decentralized finance (DeFi) platform founded in 2022 and based in the Cayman Islands, specializing in the tokenization of real-world assets (RWAs) to bridge traditional finance with blockchain technology. It operates through an ecosystem that includes the Ondo Foundation, which supports decentralized protocols for tokenized assets, and commercial partnerships focused on creating secure, compliant digital representations of assets such as U.S. Treasuries, equities, ETFs, and funds. By converting these assets into blockchain-based tokens, Ondo enables 24/7 trading, enhanced liquidity, and broader accessibility for both institutional and retail investors, while maintaining regulatory compliance through permissioned validators and proof-of-reserve systems.

Key products include USDY, a yield-bearing stablecoin backed by short-term U.S. Treasuries and bank deposits, offering daily yields and deployed on networks like Solana, Sei, and Stellar as of September 2025; OUSG, the Ondo Short-Term US Government Treasuries Fund, which anchors initiatives like Fidelity’s onchain money market fund (FDIT) and represents over 99% of its assets; and Flux Finance, a lending protocol for borrowing and lending tokenized RWAs with features like permissionless access and yield optimization. Ondo also launched Ondo Chain in February 2025, a layer-1 blockchain tailored for RWAs with omnichain bridging, integrated oracles for accurate pricing, and staking of tokenized assets for network security, addressing liquidity fragmentation in tokenized markets.

Recent developments underscore Ondo’s growth in the RWA sector, which expanded 224% since early 2024, with tokenized U.S. Treasuries up 85% year-to-date and U.S. equities surging 560%. Partnerships include integration with Mastercard’s Multi-Token Network (MTN) for OUSG, enabling 24/7 yield access for businesses; collaborations with BNB Chain for tokenized equities covering over 100 U.S. stocks and ETFs; and a $250 million investment fund, Ondo Catalyst, with Pantera Capital targeting RWA protocols. Backed by Founders Fund, Pantera Capital, and Coinbase Ventures, Ondo has acquired Strangelove to bolster its full-stack RWA infrastructure, positioning it as the second-largest issuer of tokenized U.S. Treasuries.