Ondo Finance, a leading player in the RWA (Real World Assets) sector, announced yesterday the launch of its tokenization platform Ondo Global Market (Ondo GM). This innovative platform aims to leverage blockchain technology to provide global investors with seamless access to US financial products like stocks, bonds, and ETFs. Below, we explore Ondo GM's financial advantages, core features, and solutions to traditional finance pain points.
Ondo GM's Financial Advantages
Investors in traditional finance often face complex, time-consuming processes and limitations. Ondo GM addresses these challenges with the following benefits:
- Global Accessibility: Non-US investors can purchase US securities with minimal friction, comparable to buying stablecoins, while gaining access to institutional-grade services like lending and derivatives trading.
- Cost-Efficiency for Brokers: International brokers can integrate Ondo GM to offer US securities to clients, reducing operational costs compared to traditional brokerage models.
- New Distribution Channel: Asset managers and issuers gain access to a broader global on-chain investor base, enabling tokenization of new assets.
- DeFi Integration: Crypto platforms (wallets, protocols, exchanges) can provide users with exposure to high-quality traditional securities, enabling cross-collateralization with crypto assets.
Core Features of Ondo GM
Ondo GM stands out with these key features:
- Diverse RWA Exposure: Access to 1,000+ securities listed on NYSE/NASDAQ.
- 24/7 Global Availability: Mint, redeem, and transfer tokens anytime outside the US.
- Instant Minting/Redemption: No delays for tokenized securities creation or liquidation.
- Deep Liquidity: Mirrors the liquidity of underlying securities for low-slippage trades.
- Built-In Leverage: Use tokenized holdings as collateral for institutional-grade borrowing rates.
- On-Chain Financial Services: Utilize DeFi protocols for transparent, composable transactions.
- Yield Opportunities: Earn additional income by staking tokens to support blockchain infrastructure.
- Transferable Tokens: Freely transfer tokens across wallets/platforms outside the US.
- Investor Protection: Robust legal structures minimize bankruptcy risks.
- Securities Lending: Opt-in to lend underlying securities for extra income.
- API Support: Comprehensive APIs for brokers and platforms to build on Ondo GM.
Solving Traditional Finance Pain Points
Ondo GM tackles five major challenges in traditional finance:
1. Accessibility and Cost Barriers
Global investors face high fees and geographic restrictions. Ondo GM enables non-US investors to purchase US securities (e.g., AAPL, TSLA) via stablecoins at minimal cost.
2. Platform Lock-In
Traditional brokerage accounts restrict users to a single platform’s fees and services. Ondo GM tokens are freely transferable across wallets/DeFi protocols, empowering users.
3. Fragmented Platforms
Brokerage assets are siloed in separate systems. Ondo GM records ownership on-chain, allowing cross-platform operations (trading, lending) with user consent.
4. Expensive Leverage
Traditional leverage options are costly and limited. Ondo GM integrates institutional borrowing, enabling cross-collateralization of tokenized securities and crypto assets.
5. Hidden Risks
Many platforms lend client securities without transparency. Ondo GM only lends securities with explicit user authorization, passing all earnings to investors.
👉 Discover how Ondo GM revolutionizes global finance
FAQs
Q1: Who can use Ondo GM?
A: The platform is available globally except for US residents due to regulatory restrictions.
Q2: Are Ondo GM tokens backed by real assets?
A: Yes, each token is 1:1 backed by reserves of the underlying US securities.
Q3: How does Ondo GM compare to traditional brokerages?
A: It offers lower fees, 24/7 access, DeFi integration, and no platform lock-in.
Q4: What types of assets are available?
A: US stocks, bonds, ETFs, and other securities listed on major exchanges.
Q5: Can I earn yield on Ondo GM tokens?
A: Yes, through securities lending or staking in DeFi protocols.
Q6: Is Ondo GM secure?
A: It employs institutional-grade legal structures and blockchain transparency.