- Ondo Finance and WLFI aim to bridge TradFi and DeFi by integrating tokenized RWAs like USDY and OUSG into WLFI’s platform for lending and trading.
- Ondo Chain’s launch addresses RWA adoption challenges, backed by institutional support, to create a stable environment for blockchain-based finance.
Ondo Finance and World Liberty Financial (WLFI) have announced their partnership to expand the adoption of tokenized Real World Assets (RWAs) and bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi).
This partnership, which was first revealed in a now-deleted blog post, points to the growing trend of integrating conventional financial products with blockchain technology. The two companies aim to integrate tokenized assets like the US Dollar Yield Token (USDY) and Overnight US Treasury Bills (OUSG) into WLFI’s platform, offering new avenues for lending and margin trading services.
Trump family project WLFI and Ondo Finance announced a strategic partnership to promote the adoption of RWA and bring traditional finance to the chain. WLFI is exploring the integration of Ondo’s tokenized assets into the WLFI network as treasury reserve assets, including the US…
— Wu Blockchain (@WuBlockchain) February 11, 2025
As part of the cooperation, WLFI is exploring using Ondo’s tokenized assets as treasury reserve assets within its network. As noted by CNF, the partnership will allow WLFI users access to secure yield and traditional financial assets, with the possible integration of USDY and OUSG tokens. This would enable WLFI users to engage in DeFi activities with assets backed by stable, low-risk traditional finance products, such as U.S. government bonds.
However, WLFI’s objective is to create a platform that will offer lending, borrowing, and margin trading capabilities using tokenized RWAs, providing a blend of decentralized finance features with the stability of traditional finance assets. However, whether U.S. users can access these assets remains unclear, as some of Ondo’s products, including USDY, are unavailable in the United States.
The Launch of Ondo Chain
Adding to this sentiment, Ondo Finance introduced Ondo Chain, a new Layer 1 blockchain designed to meet the unique needs of tokenized RWAs. The blockchain will address common challenges in RWA adoption, such as high transaction fees, uneven liquidity, and regulatory concerns.
By offering enhanced security and allowing validators to stake RWAs instead of native crypto tokens, Ondo Chain is reported to reduce volatility risks and provide a more stable environment for institutional-grade financial products.
In addition, industry support for Ondo Chain has been strong, with financial institutions such as Franklin Templeton, Wellington Management, and WisdomTree serving as design advisors. This institutional backing suggests that the project could position itself as a player in the RWA space.
Future Plans for WLFI and Ondo Finance
The collaboration between WLFI and Ondo Finance extends beyond the integration of tokenized assets. Both companies are focused on expanding their offerings to meet institutional demand for blockchain-based financial products. According to an earlier CNF post, WLFI, which the Trump family supports, has already invested in Ondo tokens, including a recent purchase of $470,000 worth of ONDO tokens.
Additionally, Ondo Finance continues to push for the wider adoption of tokenized assets through its Ondo Global Markets initiative, which aims to bring U.S. stocks, bonds, and exchange-traded funds on-chain. The plan is intended to provide institutions with an accessible way to blockchain-based financial markets while maintaining regulatory compliance.
As the RWA market nears a total value of $17 billion, Ondo Finance is positioning itself as a key player in the tokenized asset sector. The network’s efforts are evident as it ranks as the fourth-largest protocol in total RWA value, with over $653 million in tokenized assets.
Source: rwa.xyz
Through initiatives like Ondo Chain and Ondo Global Markets, the company is bridging the gap between traditional and decentralized finance, tapping into the growing institutional demand for on-chain financial products.
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