Ondo Finance Introduces Global Platform for Tokenizing U.S. Securities

• Ondo GM enables global investors to access U.S. stocks, bonds, and ETFs through tokenized, freely transferable assets.
• The platform now offers APIs and SDKs to foster third-party app development, expanding its tokenized ecosystem.
• Ondo GM uses blockchain technology to ensure transparency, liquidity, and cross-platform interoperability for financial services.

Ondo Finance unveiled an important Ondo Global Markets (Ondo GM) platform enhancement with its new tokenization framework that enables American publicly traded stocks and bonds and ETFs to operate on-chain. 

The platform extends international investment opportunities by allowing global traders to access diverse U.S.-based stocks, bonds and exchange-traded funds through an innovative easy market entry mechanism.

Tokenized Securities for Global Access

Every token under the new system can be backed directly by one unit of its matching underlying asset which provides total transparency coupled with security for buyers. The new platform will make previously inaccessible securities available worldwide since these tokens maintain free transferability beyond U.S. borders. The innovation represents fundamental progress toward greater market liquidity while unlocking worldwide financial market accessibility.

Ondo GM will expand beyond security tokenization by establishing a third-party financial application platform that can be accessed through Application Programming Interfaces and Software Development Kits. The platform enables developers to construct applications that work with tokenized securities thus expanding the available opportunities on the platform. The company stands ready to operate as an innovative financial services center together with a blockchain-based solutions infrastructure.

Initially, Ondo GM planned to tokenize securities through a permissioned system tied to traditional broker-dealers. However, after consulting with industry stakeholders, the company pivoted to a model that mirrors the functionality of stablecoins. This change allows for more flexibility at the distribution layer, providing permissions without restricting the transferability of tokens. This shift ensures that users can freely trade and transfer tokens within the platform, further enhancing liquidity.

Enhancing Market Liquidity and Accessibility

The new tokenization model allows for instant minting and redemption, providing investors with 24/7 access to a wide array of U.S. securities. With full liquidity, built-in margin access, and on-chain financial services, the platform enhances the trading experience by reducing fees, eliminating platform fragmentation, and simplifying asset management. Additionally, investors now have the opportunity to participate in securities lending, generating extra yield in the process.

Ondo GM integrates blockchain technology to provide a transparent, decentralized, and open financial system. This ensures that users can borrow, trade, and manage assets without worrying about platform lock-ins. The blockchain-based record-keeping system facilitates interoperability across various financial services, positioning Ondo GM as a key player in the tokenized financial ecosystem.