Infrastructure pivot positions firm for tokenized asset trading
Ondo Finance has abandoned plans to build a conventional layer-1 blockchain, instead introducing Ondo Network, a private trading platform that separates trade execution from settlement on public blockchains.
The shift marks a strategic recalibration for the tokenized asset issuer. In February 2025, Ondo announced vision for Ondo Chain, a blockchain designed for institutional finance and tokenized real-world assets. The company concluded that a traditional blockchain was not the best tool for handling the speed and privacy institutional trading requires.
Ondo Network operates by executing orders privately for greater speed, while finalized asset transfers settle on public blockchains. The architecture decouples the two functions: execution happens off-chain in a controlled environment; settlement occurs transparently on-chain.
Ondo Perps, a perpetual futures platform, is the first application built on Ondo Network. The platform allows traders to use tokenized assets as collateral for trading perpetual futures contracts. Perpetual futures are expanding from crypto markets into traditional assets such as stocks, commodities like oil and gold.
Ondo is one of the sector’s largest issuers of tokenized assets. The firm currently manages $2.6 billion in tokenized U.S. Treasury products across OUSG and USDY, and $850 million in tokenized equities.
Last week, Ondo’s broker-dealer obtained FINRA approval to launch regulated markets and services for tokenized securities, clearing a regulatory hurdle for the platform’s expansion.
The network could eventually support spot markets, lending, structured products, and settlement infrastructure alongside perpetual futures. Tokenization is gaining traction as firms look to modernize capital markets with faster settlement and around-the-clock trading.
