Ondo Finance

Trust is an important factor when it comes to trading and investing on a platform. To fill this gap, an innovative fintech has emerged – Ondo Finance.

Read ahead to learn more about this innovative network, including tokenomics and future growth prospects.

Introduction to Ondo Finance (ONDO)

It all began in July, 2021, when Nathan Allman and Pinku Surana endeavored to pursue their noble aim of blending traditional finance with a decentralized world of blockchains.

While you can buy U.S. treasuries in traditional financial markets, you cannot get them on a blockchain. Perhaps the country you belong to has liquidity issues with the US. Or perhaps you as an investor face some other geographical challenges when trying to access that market.

Ondo Finance has realized this gap in traditional financial markets.

Ondo Finance platform’s unique positioning is at the intersection of traditional finance (TradFi) and decentralized finance (DeFi). Its mission is to build the next generation of financial infrastructure to improve market efficiency, transparency, and accessibility.

Its executive leadership has big names in their experience portfolio, including Goldman Sachs, Brdigewater, Millennium, and Maker. That surely makes it a platform to be taken seriously.

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Ondo Finance’s Core Offerings

Ondo Finance has distinguished itself for its tokenized real world assets (RWA). Perhaps its most famous RWA offerings are USDY, OUSG Fund, and OMMF.

Ondo has dived into the money market by launching a stablecoin alternative specifically for institutional investors with its OMMF token. OMMF provides them with tokenized exposure to US money markets.

What makes OMMF unique is its 24/7 transferability, unlike traditional MMF.

Ondo Finance’s Approach to Real-World Assets (RWA)

Ondo Finance works just like a regular investment bank, except that it is decentralized. It has seamlessly mixed the principles of TradFi and DeFi by tokenizing RWAs.

When RWAs become tokenized on a blockchain, they become more liquid and accessible to investors. This easier transferability has revolutionized how traditional markets work, as the boundaries between TradFi and DeFi have become blurrer with Ondo.

It has now become possible for assets that were traditionally illiquid to become accessible to a wider audience, thereby unlocking their potential to become a larger market.

Ondo’s Tokenomics

Given the utility of ONDO and its growing popularity, it is not surprising to see how much attention it has received from investors.

The token has a circulating supply of 1.4 billion out of a supply of 10 billion tokens. ONDO token has the largest market cap out of all RWAs. But the token only gives voting rights for decisions related to Flux Finance.

The ONDO token is used for governance of ONDO DAO (decentralized Autonomous Organization), which oversees the Flux Finance protocol.

Wait, what is Flux Finance, you might wonder. It is basically a lending protocol created by Ondo finance forked from Compound V2. That means holders of Ondo tokens can control Ondo DAO.

How to Purchase Ondo Finance Tokens

Investing in Ondo’s products is simple. To buy Ondo Finance token, follow these steps:

1. First, go to the website of your preferred platform to buy your token.
2. Now, create an account and verify.
3. Good. It is time to add a payment method. If you are using coinbase, you can use a bank account, debit card or even a wire.
4. Here comes the main step. Start a trade by selecting the ‘Buy and Sell’ button.
5. Select Ondo Finance from the list of products.
6. Enter the amount of tokens you want to buy and tap ‘Preview’.
7. Finally, confirm the details to complete your transaction.

There are many exchanges available where you can trade your Ondo Finance tokens. Some of the most popular of them include HTX (Huobi), KuCoin, and Gate.io.

Let’s look at Ondo’s most famous products, USDY and OUSG.

Ondo’s USDY: A Novel Stablecoin Alternative

USDY is an interest-bearing note that is an alternative to stablecoins. Investors of USDY receive an interest income on a monthly basis and receive the same exposure as short term treasuries and bank demand deposits. Unlike traditional stablecoins, holders of USDY earn almost all of the yield from the assets that back it.

There are other differences between conventional stablecoins and USDY. Traditional stablecoins can become illiquid if its issuing authority files for bankruptcy. But due to USDY’s connection with the U.S. Treasuries, the chances of USDY becoming insolvent are far less likely.

The high level of security and compliance that has gone into USDY has made it superior to traditional stablecoins.

Ondo’s OUSG Fund: Accessing US Treasuries on the Blockchain

OUSG Fund is older than USDY. OUSG Fund offers investors to own Black Rock’s iShares Short Treasury Bond ETF. This product provides the same exposure as short term treasuries in the US.

Similar to USDY, interest received by investors in OUSG Fund keeps accumulating and gets reinvested.

There are many differences between USDY and OUSG. Perhaps the most significant difference between them is who can invest in them. The former is open to retain investors, whereas the latter is only accessible to investors who meet a certain criteria (mentioned later).

Another difference between them is that of the scope for secondary trading. OUSG can only be traded with those participants of the secondary market who have completed Ondo Finance’s KYC process.

Regulatory Compliance and Institutional Focus

Ondo Finance seems to be taking regulatory compliance quite seriously. By acknowledging the challenges of DeFi, it has strived to get security audits by big names in the industry, like Quantstamp, Certik and Peckshield, to mention a few.

As an investor in USDY, you can only transfer it only after 40 to 50 days after your initial deposit.

Due to the laws of the U.S, investors face some restrictions to trade Ondo Finance tokens of USDY in the following jurisdictions: U.S., U.K., Canada, South Korea, Japan, Ukraine, Cuba, Syria, Belarus, Cambodia and Venezuela.

Woah. There are quite a lot of countries where trading of Ondo Finance products is restricted.

OUSG Fund and OMMF are accessible after strict screening processes that include KYC. To become a qualified purchaser of tokens like OUSG and OMMF, at least one of the following criteria must be met for institutional investors:

1. Banks and financial institutions as defined in the Securities Act.
2. Brokers and dealers as defined in the Securities Exchange Act.
3. Rural business companies.
4. Investment advisors that are registered under the state law.
5. Insurance companies according to the Securities Act.
6. Small businesses licensed as investment companies.

These criteria ensure that participants in the OUSG Fund and OMMF possess the necessary institutional stature and adhere to regulatory standards.

Future Prospects and Strategic Positioning

Ondo Finance has set a great example of the potential of DeFi to unlock access to financial products by its fusion with TradFi. It has significantly invested in tokenized securities that give it a strategic standing in the Asia-Pacific region.

Ondo Finance has strategically relocated $95 million OUSG assets to BlackRock for swift execution of the transaction. This transaction emphasizes Ondo Finance’s power in the DeFi ecosystem.

This shift of Ondo’s OUSG token to BlackRock’s funds signals its intentions to expand its reach and impact within the DeFi ecosystem. Because treasury bond ETFs are considered low risk but may not offer as high returns as those by BlackRock’s funds.

The performance of these products will significantly influence Ondo Finance’s future prospects, as investor confidence and demand for ONDO token is contingent on the performance of RWA products like USDY.

Market conditions also play a crucial role in determining the future prices of ONDO token. If interest rates get high, investors in Ondo Finance in DeFi can expect to make higher returns.

Conclusion

Ondo Finance, established in July 2021 by Nathan Allman and Pinku Surana, aims to bridge the gap between traditional finance and decentralized finance (DeFi). Recognizing the limitations of traditional markets, Ondo seeks to enhance market efficiency, transparency, and accessibility through its platform.

One of Ondo’s key offerings is tokenized real world assets (RWA), including USDY, OUSG Fund, and OMMF. These assets provide investors with tokenized exposure to traditional financial instruments like U.S. treasuries and money markets, with unique features such as 24/7 transferability and interest income.

The ONDO token serves as the governance token for Ondo DAO, which oversees the Flux Finance protocol. Holders of ONDO tokens have voting rights related to Flux Finance decisions. The token can be purchased through various platforms, with popular exchanges including HTX (Huobi), KuCoin, and gate.io.

USDY, an interest-bearing note, offers an alternative to traditional stablecoins, providing investors with exposure to short-term treasuries while earning interest income. OUSG Fund allows investors to own BlackRock’s iShares Short Treasury Bond ETF, offering similar exposure to short-term treasuries.

Ondo Finance emphasizes regulatory compliance and has undergone security audits by reputable firms like Quantstamp, Certik, and Peckshield. However, certain restrictions apply to trading Ondo Finance products in jurisdictions like the U.S., U.K., and Canada.

Looking ahead, Ondo Finance aims to leverage DeFi to unlock access to financial products and expand its reach in the Asia-Pacific region. A strategic move of $95 million OUSG assets to BlackRock demonstrates Ondo’s commitment to enhancing its presence in the DeFi ecosystem.

The future success of Ondo Finance depends on the performance of its RWA products and market conditions. Higher interest rates may lead to increased returns for investors, impacting the demand for ONDO tokens.

We Coin-Labs.com provides only objective information about Ondo Finance.
Therefore, we are not responsible for the investment decision in Ondo Finance and the resulting loss.

Ondo Finance Basics

Here are some factors that investors should consider before investing in Ondo Finance.

Cryptocurrency Features	Ondo Finance ()
Publisher or Developers
Headquarters (Registration Number)
Symbol
Platform
Published Date (CMC Registration)	2024-10-02
Max Supply	958,691,258,152,859

Reliability Score of Ondo Finance in 2024

These are indexes mesuring the investment reliability of Ondo Finance conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 0 Exchanges
Number of Available Pairs Worldwide	1 Pairs
Market Cap of the Cryptocurrency	6,683,329 USD (Rank #1295)

The table above shows the result of investment suitability evaluation for Ondo Finance.
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Ondo Finance Price

Here are the price and recent trading volume of Ondo Finance. (Data of 2024-10-03 00:15:00)

Price Items	Price and Trading Volume of Ondo Finance
Ondo Finance Price	0.000 USD
Price Change 24h	-5.48%
Price Change 7d	-4.99%
Trading Volume 24h	11 USD
Trading Volume Change 24h	-82.47%

Cryptocurrency Metadata

You can check the development status and social media information of Ondo Finance through the links in the table below.

Metadata Source	URL
🌎 Official Website
📖 White Paper
🛰️ Source Code (GitHub)
🐦 Twitter
🤖 Reddit
🎺 Message Board

Where to Buy Ondo Finance

Here are the top ten world crypto exchanges where traders can buy Ondo Finance in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Not listed
KuCoin	Not listed
Bitfinex	Not listed
OKX	Not listed
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Not listed

Frequently Asked Questions