Ondo Finance Launches Tokenized US Stocks and ETFs on Blockchain Platform

Strategic Insights -

Ondo Finance, a leader in blockchain-based financial innovation, has announced the launch of Ondo Global Markets, a platform for tokenized US stocks and ETFs. This move aims to make US securities markets, valued at approximately $63 trillion, more accessible to global investors by bridging traditional and decentralized markets. The platform, powered by Alpaca's Broker API, offers 100+ assets live and plans to scale to 1,000+ by the end of the year, providing deep liquidity and transferable assets available 24/7.

Key Takeaways:

  • Ondo Global Markets offers over 100 tokenized US stocks and ETFs, with plans to increase to over 1,000 by the end of the year, making the US securities market of approximately $63 trillion more accessible to global investors.
  • The platform is powered by Alpaca's Broker API and provides deep liquidity, transferable assets available 24/7, and allows on-chain investors to access tokenized stocks and ETFs like traditional exchange liquidity.
  • Ondo assets can be used in DeFi (Decentralized Finance) and behave like stablecoins for ease of use and automation.
  • The collaboration with Alpaca aims to remove barriers faced by global investors, including strict market access rules, high minimums, and cumbersome settlement processes.
  • Ian De Bode, Chief Strategy Officer at Ondo Finance, noted that global investors have historically faced barriers to accessing the US securities markets, and this collaboration aims to tokenize US stocks and ETFs with the speed, accessibility, and programmability of blockchain.
  • Yoshi Yokokawa, CEO and Co-Founder of Alpaca, emphasized that the future of finance lies in bridging traditional and decentralized markets, and Ondo Global Markets reflects this vision.
  • The platform is currently available on Ethereum, with plans to release on Solana and BNB Chain soon.

Statistics:

  • The tokenized market capitalization could reach around $2 trillion by 2030 across a variety of asset classes, according to a McKinsey report.
  • The US securities market is valued at approximately $63 trillion.
  • Over 100 tokenized US stocks and ETFs are available on Ondo Global Markets, with plans to increase to 1,000+ by the end of the year.
  • The platform offers transferable assets available 24/7, 365, where allowed, providing deep liquidity for on-chain investors.
  • Ondo assets behave like stablecoins for ease of use and automation, enabling tokenized stocks to be used in DeFi.

Sources:

  • Ondo Finance news release
  • McKinsey report
  • Alpaca press release
  • Ondo Finance and Alpaca joint statement