Bringing institutional-grade financial products on-chain is the focus of Ondo Finance. The venture uses blockchain technology to provide decentralised finance (DeFi) products and services. The main products offered by Ondo Finance include:

• Fixed yield loans backed by crypto assets, using the Flux Finance protocol it developed.
• Tokenised US dollar-denominated real-world assets via its OUSG, USDY, and OMMF tokens.
• The Ondo token bridge and converter, which supports cross-chain movement of assets.

There’s been a lot of excitement about the platform’s tokenised products that let investors bridge the gap between traditional regulated assets and blockchain’s usability to benefit from real-time, 24/7 trading of securities without needing to use a broker.

Ondo Finance launched its first tokenised product in 2023 on the Ethereum blockchain and now leverages a variety of blockchains to deliver tokenised assets including Solana, Aptos, Injective, Mantle, MANTRA, Noble, Polygon and Sui.

In addition to its blockchain partners, the company’s ecosystem includes custody providers, over-the-counter (OTC) desks, liquidity venues, and service providers such as Coinbase, BlackRock, and Morgan Stanley. Its products are aimed at high net-worth individuals and institutional investors, who have to meet certain criteria and know your customer (KYC) requirements.

Ondo Finance’s tokenised RWA products include:

• OUSG, a token that enables investment in US Treasury bills primarily through BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and BlackRock’s FedFund (TFDXX).
• USDY, a yield-generating tokenised note secured by short-term US Treasuries and bank demand deposits.
• OMMF, which tokenises US Government money market funds to provide a dollar replacement for settlement and collateral in the OTC trading and lending space.

The project was founded by, and remains led by, Nathan Allman, whose work history includes a finance role at Goldman Sachs. While it’s essentially an asset manager that specialises in tokenised digital assets and liquidity lending, the project also develops technology to support the scaling and interoperability of tokenised assets on-chain.

Data from DefiLlama shows that of the major RWA protocols, Ondo Finance ranks second in terms of total value locked (TVL) at $US549.92 million.