RWA enters an explosive cycle: How Ondo Finance is reshaping the on-chain asset infrastructure landscape

In June 2026, the crypto market continued to churn and fluctuate amid macro headwinds. Bitcoin fell below $64,000, Ethereum dropped to around $1,729, and the U.S. Federal Reserve kept interest rates in the 3.50%–3.75% range for the fourth consecutive time. However, while valuation compression hit speculative assets, another sector was moving on a completely opposite track—on-chain tokenization of real-world assets (RWA).

By mid-June 2026, the on-chain RWA size excluding stablecoins had risen to about $34 billion, expanding more than fivefold from the roughly $5.4 billion baseline at the beginning of 2025. The number of active tokenized RWAs increased by 589% from early 2025 to June 2026. This expansion was not driven by speculative market conditions; rather, it resulted from the combined effects of a regulatory framework, infrastructure maturity, and institutional capital.

Amid this structural shift, Ondo Finance has emerged as the most eye-catching participant in the RWA track, with a pace of growth far exceeding the industry average. Its total value locked (TVL) has surpassed $2.5 billion, ranking first in both tokenized U.S. Treasuries and tokenized stocks. From an AUM of about $534 million in 2024 to more than $3.0 billion by 2026, Ondo completed, within two years, a leap from a single government bond yield product to an RWA infrastructure platform.

Data Perspective: Ondo’s Market Position and Growth Logic

Ondo Finance’s current market position can be clearly demonstrated through a set of key data points.

In the tokenized U.S. Treasury sector, Ondo leads the entire segment with about $2.0 billion in TVL, surpassing any other tokenized asset provider. This scale is supported by two core products: USDY—Ondo’s permissionless tokenized U.S. Treasury product. Its TVL has surpassed $1.0 billion, covering nine blockchains, offering a combination of a stablecoin-like experience and yield for individual and institutional investors worldwide (excluding the U.S.); and OUSG—the flagship institutional fund, with TVL exceeding $770 million, supporting 24/7 subscription and redemptions, daily interest accrual, low fees, and deployment across multiple public chains such as Ethereum, Solana, XRP Ledger, and Polygon. The OUSG portfolio includes tokenized fund products from leading asset managers such as Fidelity (FDIT), BlackRock (BUIDL), Franklin Templeton (BENJI), WisdomTree (WTGXX), as well as Wellington Management and FundBridge Capital (ULTRA). State Street Investment Management’s SWEEP is also expected to be integrated.

In the tokenized stock sector, Ondo holds a dominant position as well. Since the launch of the Ondo Global Markets platform in September 2025, its TVL has surpassed $500 million. It covers more than 200 tokenized stocks, has tens of thousands of asset holders, and a cumulative trading volume exceeding $7.0 billion. The platform is live on Solana, Ethereum, and BNB Chain, and is supported by mainstream wallets and exchanges.

From on-chain distribution, Ethereum is Ondo’s primary network for tokenized assets, with on-chain asset value of about $1.5 billion. Solana follows with approximately $248 million, and BNB Smart Chain has about $123 million. The number of asset holders has reached 172,400, up 27.3%, with assets deployed across 10 blockchains.

Notably, there is a significant divergence between the growth of Ondo’s TVL and the price trend of the ONDO token. On June 24, 2026, the ONDO token was priced at about $0.3045, down more than 80% from its historical high of $2.14. Its market cap was about $1.481 billion, and its 24-hour trading volume was about $56.5 million. This divergence itself indicates that Ondo’s business fundamentals—TVL, user numbers, and institutional partnerships—do not translate into a simple linear mapping to its token price, and the market’s valuation logic for the RWA sector is still evolving.

From a Single Product to Institutional-Grade Infrastructure: The Evolution of Ondo’s Product Matrix

Ondo’s growth story is essentially a composite function of “product depth × ecosystem breadth.”

On the product side, Ondo has expanded from a single OUSG into a full-category RWA platform covering government bonds (OUSG + USDY), stocks (Ondo Global Markets), and ETFs. In March 2026, Ondo partnered with Franklin Templeton to tokenize and put five ETF products on-chain for the first time, covering categories including growth stocks, large-cap stocks, fixed income, equity yield, and gold. This collaboration marked the beginning of traditional asset managers migrating their core product lines onto the blockchain.

On the ecosystem side, Ondo has built partnerships with 153 Web3 companies, spanning multiple key areas such as TradFi, public chains, custody, DeFi, exchanges, wallets, cross-chain bridges, payments, and service providers. Partners include traditional finance giants such as BlackRock, Fidelity, Goldman Sachs, JPMorgan Chase, Mastercard, and PayPal, as well as leading custody institutions like Anchorage Digital, BitGo, and Fireblocks. This “Wall Street + Web3” bilateral network effect, to some extent, positions Ondo as an “infrastructure outsourcing provider” for traditional financial institutions issuing on-chain assets.

In May 2026, Ondo jointly completed the first near real-time cross-border, cross-bank tokenized U.S. Treasury redemption transaction with Kinexys by J.P. Morgan, Mastercard, and Ripple. The technical significance of this transaction lies in the fact that it demonstrates tokenized Treasuries can complete cross-border settlement in under five seconds, whereas similar operations in the traditional financial system typically take days. In the same month, Ondo reached a collaboration with Broadridge Financial Solutions (with daily securities settlement volume exceeding $15 trillion), enabling holders of tokenized stocks and ETFs to submit voting preferences for the underlying stocks.

In June 2026, Ondo announced it had signed a memorandum of understanding with Mirae Asset Global Investments (Mirae Asset Global Investments), the largest asset management company in South Korea, to jointly advance ETF tokenization and on-chain asset management infrastructure building. Mirae Asset manages total AUM of $263.7 billion in U.S.-listed ETFs. Ondo Global Markets has surpassed $1.0 billion in TVL, offering more than 260 tokenized securities, with cumulative trading volume exceeding $18.0 billion. Mirae plans to start with U.S.-listed ETFs first and gradually expand the scope of tokenized assets to the Canadian, European, Australian, Japanese, and Hong Kong markets.

In addition, Ondo has recently hired John Hoffman, the former head of Invesco ETFs (who previously served as Grayscale’s Managing Director), to drive comprehensive on-chain portfolio and strategy development. This personnel appointment indicates that Ondo is transforming from “issuing a single tokenized asset” into a “complete institutional-grade on-chain asset management solution.”

On June 10, 2026, the Depository Trust & Clearing Corporation (DTCC) established a U.S. market tokenization working group. It invited Ondo, along with BlackRock, Goldman Sachs, JPMorgan Chase, Circle, and others, to jointly participate in designing on-chain trading methods for stocks and Treasuries. As the core clearing infrastructure for U.S. financial markets, DTCC’s direct invitation to Ondo to participate in standard-setting marks Ondo’s upgrade from an “industry participant” to an “infrastructure co-builder.”

Structural Changes in the RWA Track: Why Ondo Is Standing at the Center

To understand Ondo’s rise, it must be viewed within the overall structural changes occurring in the RWA track.

As of June 2026, tokenized U.S. Treasuries and money market funds remain the largest categories in the RWA market, with a size of about $17 billion, accounting for nearly 60% of the entire RWA market. Among them, BlackRock’s BUIDL and Hashnote’s USYC have each already surpassed $3.0 billion. However, this market landscape is undergoing subtle yet profound changes.

Ondo has surpassed Franklin Templeton in the size of tokenized U.S. Treasuries. The significance of this surpassing goes beyond a mere ranking change—it indicates that within the RWA sector, the liquidity efficiency and compliance architecture of native on-chain protocols are redefining the rules of competition. Traditional asset management giants’ early mover advantage is no longer unshakable.

In its June 2026 report, “Tokenization 2030: Wall Street On-Chain,” Citigroup predicted that the tokenized RWA market could reach $5.5 trillion under a baseline scenario and $8.2 trillion under an optimistic scenario. Even using a more conservative forecast (a $400 billion market projected in a joint Keyrock and Securitize report), the current $3.4 billion market size still sits only in the early stage of the growth curve.

But one structural problem that is easy to overlook is this: of the $3.4 billion in RWA excluding stablecoins, only about $2.47 billion is actually allocated to third-party DeFi liquidity pools in the form of “DeFi total value locked (TVL).” On-chain value of bonds and money market funds exceeds $16.6 billion, yet only about $920 million is truly locked in DeFi, implying an adoption rate of roughly 5.5%. This gap is not caused by technical bottlenecks; it is an inevitable outcome of product architecture—large amounts of RWA exist on-chain in name, but in substance they represent compliance extensions of traditional financial infrastructure through blockchain channels.

This is Ondo’s core value. Ondo is not simply “moving assets on-chain,” but building an infrastructure layer that allows institutional assets to genuinely integrate into the on-chain financial system. From compliance packaging, on-chain issuance, and multi-chain deployment to trading and settlement, Ondo is addressing the gap between “on-chain” and “usable” RWA.

Challenges and Uncertainties

Ondo’s growth momentum is undoubtedly strong, but the following structural risks and uncertainties still need to be incorporated into the evaluation framework.

Regulatory risk: Although the U.S. Securities and Exchange Commission has concluded its confidential investigation into Ondo and has not brought any charges, the regulatory framework for the RWA track continues to evolve. The compliance boundaries for tokenized securities, regulatory coordination across jurisdictions, and potential targeted legislation in the future could all affect Ondo’s business model.

Tokenomics: The divergence between the ONDO token price and TVL growth reflects the market’s uncertainty about how the token captures value. As token unlock events progress, additional sell-side pressure on the supply side may further affect price performance.

Competitive landscape: Both BlackRock’s BUIDL and Hashnote’s USYC have surpassed $3.0 billion, leading in single-product scale ahead of Ondo’s OUSG. Traditional asset management giants are accelerating their deployment of on-chain asset issuance. Whether Ondo’s early advantage can continue to translate into a competitive moat still needs to be validated over time.

Adoption bottleneck: The actual penetration of RWAs into DeFi is only about 5.5%. A large portion of on-chain RWA assets have not yet truly been integrated into DeFi’s composable ecosystem. If Ondo cannot effectively improve the DeFi composability of its assets, its growth may face an upper limit.

Conclusion

Ondo Finance’s rise is a microcosm of the historical process in which the RWA track moves from “peripheral experiments” to “institutional-grade infrastructure.” From $500 million TVL in 2024 to over $2.5 billion in 2026; from a single OUSG to a full-category platform covering Treasuries, stocks, and ETFs; from ecosystem cooperation with 153 Web3 companies to participating in DTCC-led industry standard-setting—Ondo’s growth trajectory reflects not only the development of a single project, but also a structural trend in which boundaries between traditional finance and decentralized finance are dissolving.

The true meaning of the “BlackRock moment” is not any specific deal or partnership, but a turning point—at which on-chain assets shift from “experiments by crypto natives” to “standard allocations in global capital markets.” Is Ondo already standing at the center of this turning point? The data provides an initial affirmative answer. But the real test lies ahead: when the $5.5 trillion market expectation begins to materialize, can Ondo convert its current technological and ecosystem advantages into sustainable competitive barriers and value-capture capability?

The answer is still unknown, but the sector has already opened up.

FAQ

Q1: What are Ondo Finance’s core products?

Ondo Finance currently has three major core product lines: OUSG (a tokenized U.S. Treasury fund for qualified investors, with TVL exceeding $770 million), USDY (a permissionless tokenized U.S. Treasury product for global investors, with TVL exceeding $1.0 billion), and Ondo Global Markets (a tokenized stock and ETF platform, with TVL exceeding $500 million, covering more than 200 types of assets).

Q2: What is Ondo’s TVL currently?

As of June 2026, Ondo Finance’s total value locked (TVL) has surpassed $2.5 billion. It is the largest platform across both tokenized U.S. Treasuries and tokenized stocks. Its assets under management temporarily surpassed $3.0 billion earlier in 2026.

Q3: What are the underlying assets of OUSG?

The core underlying assets of OUSG are iShares short-term U.S. Treasury ETFs under BlackRock. Its investment portfolio also includes tokenized fund products from leading asset management companies such as Fidelity, Franklin Templeton, and WisdomTree. OUSG’s management fee cap is 0.15%, and fees are waived until July 1, 2026.

Q4: What is the relationship between Ondo and BlackRock?

Ondo has multiple partnership relationships with BlackRock: the OUSG portfolio includes BlackRock’s BUIDL fund; the BlackRock BUIDL Fund has transferred large amounts of USDC to Ondo multiple times; and both parties jointly participate in DTCC’s U.S. market tokenization working group. Ondo has also established partnerships with 153 Web3 companies, and BlackRock is among them.

Q5: How large is the overall market for tokenized RWA?

As of June 2026, the on-chain RWA size excluding stablecoins is about $3.4 billion, up more than fivefold from the beginning of 2025. The size of tokenized U.S. Treasuries and money market funds is about $1.7 billion, accounting for nearly 60% of the RWA market. Citigroup predicts that the tokenized RWA market could reach $5.5 trillion under a baseline scenario.