Ondo drops tokenized asset blockchain plans for private, high-speed trading network

Ondo Finance, a notable issuer of tokenized U.S. Treasuries and equities, has abandoned its earlier plans to develop a traditional layer-1 blockchain. Instead, the company has launched Ondo Network, a trading platform designed specifically for institutional trading needs. Ondo Network separates trade execution from settlement by allowing fast, private order execution while final settlement occurs on public blockchains. Ondo Finance CEO Ian de Bode explained that this approach better meets the application requirements they identified after creating their new perpetual futures platform, Ondo Perps.

Ondo Perps is the first application to run on Ondo Network, enabling trading of perpetual futures with tokenized assets serving as collateral. This reflects the company’s shift from building a blockchain (initially envisioned as Ondo Chain) toward creating a more tailored trading infrastructure. The change aims to address the key concerns of institutional investors who seek blockchain-based settlement benefits without revealing their trading strategies, activity, or positions to competitors due to privacy considerations.

The decision comes amid increasing interest from Wall Street in asset tokenization, with Ondo Finance already managing about $2.6 billion in tokenized U.S. Treasury products and roughly $850 million in tokenized equities. Recent regulatory progress includes Ondo’s broker-dealer achieving FINRA approval for regulated markets and tokenized securities services. Ondo Network is expected to eventually support a wider range of financial instruments and services, including spot markets, lending, and structured products, expanding beyond just token issuance to broader trading infrastructure.