The emergence of Ondo tokenized stocks marks a profound transformation in the global investment landscape. As a leader in the RWA (real-world assets) tokenization space, Ondo Finance holds nearly 40% of the global tokenized securities market. This innovative model fundamentally changes the way global investors participate in the U.S. stock market by bringing traditional financial assets onto the blockchain. Ondo’s tokenized stocks not only break geographical barriers but also enable round-the-clock trading, providing investors with unprecedented flexibility and convenience. The core advantage of this model lies in its retention of the value foundation of traditional stocks while incorporating characteristics of blockchain technology, such as efficient trading and settlement mechanisms. Through Ondo tokenized stocks, investors can enjoy the stability of traditional financial markets while experiencing the innovative advantages brought by blockchain technology. This integration not only attracts traditional investors but also provides a bridge for cryptocurrency holders to enter the traditional financial market, effectively promoting the interconnection and fusion of the two fields.
The strategic cooperation between Gate and Ondo Finance has significantly lowered the threshold for global investors to participate in US stock investments by launching the Ondo section. This innovative measure allows investors to only need onecryptocurrency walletWith USDT, you can easily invest in on-chain stock ETFs. After the launch of Ondo on the Gate exchange, it provides over 33 million users worldwide with a convenient and efficient on-chain Ondo trading experience. The first batch of 26 trading pairs covers major tech stocks, index ETFs, and popular stocks, all priced in USDT, allowing cryptocurrency investors to trade directly. This not only simplifies the investment process but also significantly reduces investment costs. Traditional cross-border investments often face high transaction fees and complex regulatory requirements, but through Gate’s Ondo zone, these barriers are significantly lowered. For example, international investors participating in U.S. stock trading in the past might have had to pay transaction fees as high as 1-2%, while through Ondo tokenized stocks, this cost can be reduced to 0.1-0.3%. Additionally, Gate’s Ondo zone supports 24/7 trading, breaking through the time limits of traditional stock markets and providing global investors with greater flexibility and opportunities. This innovative model not only attracts traditional investors but also offers cryptocurrency holders a convenient channel to enter the traditional financial market.
The emergence of stock tokenization has injected new vitality into the DeFi ecosystem, propelling the on-chain economy toward broader development space. The introduction of Ondo tokenized stocks not only expands the range of investable assets in DeFi but also provides a practical case for the integration of traditional finance and decentralized finance. This integration brings multiple positive impacts to the DeFi ecosystem. First, it increases the liquidity and diversity of DeFi platforms. With daily trading volumes in the traditional stock market reaching trillions of dollars, a portion of that moving on-chain would significantly enhance the overall liquidity of the DeFi ecosystem. Second, stock tokenization opens up new opportunities for the DeFi derivatives market. For instance, the emergence of complex financial products such as options and futures based on Ondo tokenized stocks greatly enriches the product line in DeFi. Furthermore, it promotes the flow and interoperability of cross-chain assets. Tokenized stocks on different blockchains can be exchanged through cross-chain bridges, which not only improves capital utilization efficiency but also enhances the connectivity of the entire crypto ecosystem. Data shows that since Gate launched the Ondo section, the related trading volume has exhibited exponential growth, rapidly climbing from an initial average of $100,000 per day to now an average of $5 million per day. This growth trend fully demonstrates the market’s strong demand for stock tokenization products, while also reflecting the enormous potential of the DeFi ecosystem in absorbing traditional financial assets.
Ondo has established a strong compliance moat in the process of breaking through traditional financial barriers, which is one of the key factors for its success. Ondo adopts a compliant physical asset tokenization model, where all listed tokens correspond to publicly traded stocks, backed by full asset collateral, and support on-chain free transfer and trading. This model not only ensures the authenticity and safety of assets but also meets the requirements of regulatory authorities. Ondo collaborates with licensed brokers to safeguard the underlying assets, strictly adhering to traditional financial regulatory norms. This practice effectively eliminates the concerns of regulators and traditional investors regarding tokenized stocks. Specifically, Ondo’s compliance strategy includes several aspects: asset backing, KYC/AML procedures, information disclosure, and risk management. Each tokenized stock has a corresponding physical stock as backing, and investors can verify it at any time. Strict KYC/AML procedures ensure the compliance of platform users’ identities, effectively preventing money laundering and other illegal activities. A regular information disclosure mechanism guarantees that investors can timely access relevant financial and operational information. In addition, Ondo has established a comprehensive risk management system, including liquidity management and price volatility control, to protect investors’ interests. These measures together build Ondo’s compliance moat, allowing it to maintain a competitive advantage in an increasingly stringent regulatory environment. For example, against the backdrop of the tightening cryptocurrency regulations by the SEC in the United States, Ondo, through its rigorous compliance measures, not only avoids regulatory risks but also gains recognition from regulatory authorities, laying a solid foundation for further business expansion.
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