Gate launches Ondo tokenized stock market, what is the outlook for the RWA track?

On September 3rd, Ondo Finance officially launched Ondo Global Markets, introducing over 100 tokenized US stocks and ETFs. These tokenized securities cover the most concerning US stock targets for investors, from Apple and TSL to the S&P 500 Index, almost recreating the financial liberation movement brought by stablecoins.

At the same time, Gate.io has launched the Ondo sector, offering borderless tokenized equity financial trading. This collaboration marks the transition of the RWA (Real World Asset) track from the experimental phase to large-scale application, which could fundamentally change the operation of traditional financial markets.

ONDO Market Performance: Short-term Volatility and Long-term Potential

The current price of ONDO is approximately $0.90, having recently experienced short-term fluctuations with a slight decline in momentum. Technical indicators show an RSI of 45, the MACD trend line is sloping downwards, and the fear and greed index is at 44 (neutral), indicating a short-term cautious sentiment in the market.

However, the long-term outlook is extremely optimistic. Analysts predict that the average price of ONDO may hover around $1.11 in the fourth quarter of 2025, representing a potential investment return of 13.3% compared to current levels.

Longer-term forecasts are more aggressive: the target price for 2026 is approximately $2.50, potentially reaching $5.44 in 2027, and expected to reach $7.43 by 2029. These forecasts are based on Ondo's leadership in the RWA tokenization space and continued institutional adoption.

Breakthrough in Tokenization of US Stocks: Ondo's Innovative Model

The core innovation of Ondo Global Markets lies in its "instant atomic minting and burning" mechanism. Unlike the "supermarket model" of existing platforms that requires the prior purchase of stocks and minting of tokens, Ondo adopts a more advanced "takeout model."

When users place an order to buy Amazon stock, the platform only "procures" real stocks from Nasdaq and mints Tokens; when users sell, the Tokens are immediately destroyed and the stocks are sold on Nasdaq. This method has no inventory limitations and directly inherits the trading depth of hundreds of billions of dollars on Nasdaq every day.

This model addresses the liquidity issues that have long plagued the tokenization asset space. Comparatively, $50,000 USDC can buy 218.67 AMZNon on Ondo, while only 38.97 Tokens can be purchased on other platforms, resulting in a significant slippage of -82.33%.

Advantages Experience: 24/5 Trading, Low Cost, and Global Access

Ondo offers several notable advantages in the tokenization of US stocks experience through platforms like Gate.

Near-zero trading costs: only 0.01-0.03% in trading costs, far lower than the standard fees of $5-10 from traditional brokers or the percentage fees of 0.1-0.5%. The total cost of trading $1000 in stocks is only around $1.

Extended trading hours: supports "24/5" trading - from Sunday 8 PM to Friday 8 PM (Eastern Time). This is achieved through access to regular trading hours of the NYSE and Nasdaq, pre-market and after-hours trading, as well as overnight sessions provided by alternative trading systems.

Global Access: No need for traditional brokerage accounts, no complicated KYC, users can directly purchase tokenized US stocks using stablecoins like USDC through a Web3 wallet. The minimum purchase threshold is only 1 USD.

RWA Track Overview: From Experimentation to Scalable Development

The RWA tokenization market is rapidly expanding. Data shows that the market size of RWA tokenization is expected to grow from 590 million USD in 2024 to 670 million USD in 2025, with a compound annual growth rate of 12.9%.

By 2029, this market is expected to reach 1.07 billion dollars. Factors driving growth include: increased demand for liquid assets, greater adoption of blockchain in financial services, growing interest in alternative investments, and increasingly clear regulations for digital securities.

In the field of stock tokenization, a competitive landscape has already formed with several players: in addition to Ondo, there are platforms like xStocks, Backed Finance, MyStonks, etc. According to incomplete statistics, over 30 cryptocurrency exchanges have begun offering "tokenized US stock" trading services.

Institutional Entry and Regulatory Evolution: RWA Becomes the New Frontier

The development of RWA is inseparable from the participation of traditional financial institutions and the gradual improvement of regulatory frameworks:

Hong Kong: The "Stablecoin Ordinance" will take effect on August 1, 2025, establishing the world's first regulated stablecoin system.

USA: The Senate has passed the "GENIUS Act", providing a legal framework for the tokenization of major assets such as government bonds and securities.

Institutional Participation: Huaxia Fund has launched the first retail tokenized fund, and Ant Group, HSBC, and Standard Chartered have jointly built the Ensemble sandbox.

Institutions such as BlackRock and Goldman Sachs have established strategic partnerships with Ondo Finance. These collaborations have unlocked access to high-quality, highly liquid RWA, which is a key differentiating factor in an industry that still faces regulatory uncertainty.

Challenges and Thoughts: Regulation, Liquidity, and Tax Issues

Despite the broad prospects, tokenization of US stocks still faces multiple challenges:

1. Uncertainty of cross-border regulation: Even with U.S. brokerage custody, the cross-border sale of securitized tokens may still trigger compliance requirements in different jurisdictions.
2. Market Education: How to get more traditional investors to accept on-chain US stock products and maintain stable liquidity depth is a long-term operational challenge.
3. The gray area of tax regulations: The classification of capital gains and dividend taxes for on-chain US stocks varies across different countries and has not yet been unified. There is still uncertainty regarding whether and how the IRS tracks on-chain transactions.

In addition, 85% of the ONDO Token supply is still locked, and future unlocks may cause short-term fluctuations. Investors need to pay attention to this factor in token economics.

Future Outlook

As of early September, several cryptocurrency trading platforms, including Gate, have launched on the Ondo ecosystem.

The tokenization of US stock trading volume is growing rapidly. xStocks has achieved a total trading volume of $3.782 billion in three months, while Ondo Global Markets reached a trading volume of $65 million just two days after its launch. With the entry of traditional financial giants BlackRock and Goldman Sachs, the RWA sector is entering its historic moment.

The prosperity of RWA is no longer just a concept, but a reality that is happening - it is breaking down the walls of traditional financial markets, allowing global investors to access the US capital markets on equal terms, no longer constrained by excessively high transaction costs and geographical limitations.