Ondo drops tokenized asset blockchain plans for private, high-speed trading network
Ondo Finance is pivoting from its 'Ondo Chain' blockchain project to a private, high-speed network designed for institutional trading. This move aims to provide the speed and privacy required for tokenized real-world assets while maintaining settlement on public blockchains.
Why it matters
This shift reflects the broader institutional challenge of balancing the transparency of blockchain technology with the privacy needs of traditional finance.
Dubbed Ondo Network , the system marks a shift from the company's February 2025 vision for Ondo Chain, a blockchain for institutional finance and tokenized real-world assets. After building its new perpetual futures platform, Ondo Perps, the firm said it concluded that a traditional blockchain wasn't the best tool for handling the speed and privacy institutional trading requires.
Ondo Perps is the first application using the network, with plans to offer tokenized assets as collateral for trading.
The pivot comes as tokenization gathers momentum across Wall Street. Tokenization — the process of representing traditional assets such as stocks, bonds and funds as blockchain-based tokens — is gaining traction as firms look to modernize capital markets with faster settlement and around-the-clock trading. At the same time, perpetual futures, once largely confined to crypto markets, are expanding to traditional assets such as stocks and commodities like oil and gold.
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