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Ondo Rallies as Fidelity Fund Backs OUSG, JPMorgan Highlights Partnership

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11 hour ago

Ondo Rallies as Fidelity Fund Backs OUSG, JPMorgan Highlights Partnership

The last two weeks have been revolutionary to Ondo Finance, a blockchain based solution that facilitates the tokenization of real-world assets (RWA). The total tokenized asset value in the platform amounted to $1.45 billion as per the data, which is quite high compared to the 30 days ago. The stimulus behind this speed was the introduction of Ondo Global Markets and a rapid growth of its tokenized product offering. The assets on Ondo that have been tokenized increased to over 105, a first in diversification. Meanwhile, holders increased to 16,932, and monthly active addresses increased 46.51% to 1,572. The sharp rise highlights the rising popularity of the platform in the eyes of institutional and retail players. https://x.com/noBScrypto/status/1965588580455370860 One of the main sources of the momentum of Ondo was institutional support of OUSG, the Ondo Short-Term U.S. Government Bond Fund. Fidelity, one of the largest asset managers in the world, supported OUSG, which contributed to strengthening the market in the form of the token and its purpose. Statistics indicate that OUSG constitutes 50.97 percent of the ecosystem value of Ondo with a market capitalization of over $731 million. The entry of Fidelity is timed with the issuance of tokenized U.S. Treasuries demand having an upsurge. OUSG is dominating over the portfolio, overtaking second-largest product of Ondo, USDY, that tracks U.S. dollar yields and has an equivalent value of USD 657 million, which occupies 46.61% of the platform. The two products alone control the Ondo ecosystem with over 97 percent total assets, as per data gathered by DeFiLlama. JPMorgan Highlights Partnership Fidelity was not the end of institutional recognition. Recently, JPMorgan emphasized its collaboration with Ondo, which gave the service even more plausibility concerning its role in the world of finance. The partnership highlights the importance of blockchain-based solutions in the convergence of conventional finance and decentralized models. As JPMorgan progressively builds blockchain settlements and tokenized collateral structures, its recognition of Ondo is indicative of wider trends in the industry towards tokenized fixed-income and equity securities. Besides these alliances, WisdomTree, a reputable conventional financial company that runs exchange-traded funds (ETFs), became a member of Ondo Global Markets. The step makes WisdomTree the first established TradFi firm to have a direct investment interest in Ondo in its RWA tokenization project. A move by WisdomTree into a market dominated in large part by native crypto firms can be seen as a major milestone in institutional integration. The association with the infrastructure of Ondo expands the range of products offered by the firm and enhances the confidence of investors seeking regulated exposure. A look at Ondo Treasuries The Ondo platform ecosystem embraces a list of different assets in addition to Treasuries and yield tokens. The introduction of Global Markets in recent times allowed the tokenization of U.S. equities and ETFs which helped to spur the sudden increase in the total number of assets. As platform information indicates: SPYon (SPDR S&P 500 ETF) is a market capital of over $40.4 million. QQQon (Invesco QQQ Trust) has approximately 3.4 million dollars of capitalization, iShares Core MSCI EAFE ETF (IEAFon) 2.8 million and AGGon (iShares Core U.S. Aggregate Bond ETF) has a capitalization of 2.9 million. Though these numbers are small relative to OUSG and USDY, it is the initial move in equity and fixed-income tokenization that may expand as institutional adoption expands. Monthly Flows and Market Activity The ecosystem of Ondo registered a transfer volume of 46.20 million every month, a decrease of 16.33 percent over the last month. Although transfers fell, active participation increased dramatically, signifying greater holding periods and greater investor conviction. The OUSG and USDY remain the most important flows. The distribution chart shows that there are lesser allocations in ETFs associated with technology, emerging markets, and corporate bonds. Single-stock tokenization is still in the experimental phase, as suggested by tokens like AAPLON, NVDAON, and MSFTON, which have below 0.05 each at present. The emergence of Ondo is just one among a wider trend of large financial institutions investigating blockchain and tokenization plans. Alongside moves by Fidelity, JPMorgan and WisdomTree with Ondo, a number of traditional giants have also announced projects in the field. BlackRock introduced the BUIDL fund earlier this year, tokenization U.S. Treasuries with institutional clients on Ethereum. Franklin Templeton was the first to introduce tokenized mutual funds, bringing on board blockchain rails to settle more efficiently. On its digital assets platform, Goldman Sachs has experimented with tokenized bonds with the aim of automating the issuance process and cutting the cost. HSBC launched digital bond offerings using blockchain as a way to store and distribute. The cases noted here highlight the convergence of legacy finance with decentralized systems, and Ondo is at the forefront of the adoption in RWAs. Data-Driven Growth Trajectory The growth of Ondo is indicated in metrics. The tokenized asset value of the platform has been on a steady rise since May 2023, with sudden spikes in the rise during significant launches. The latest peak was associated with the launch of the Global Markets in September that added hundreds of new equities and ETFs to the platform. Although the volumes of monthly transfer are not currently steady, the steady increase in the number of holders and addresses indicates the expansion of the user base. The presence of several asset classes improves the position of Ondo, although the ecosystem is still largely concentrated to OUSG and USDY. The consolidation of key financial actors, along with a drastic increase in tokenized assets, is an indication of Ondo impact in the formation of the RWA sector. Efficiency in settling, offering of fractional ownership, and accessibility across the globe are features that tokenization offers that are attractive to crypto-native and conventional investors. With the statistics at hand, the RWA tokenization market has shifted to more than experimental pilots to institutional scale products. The momentum of this trend is echoed in the trajectory of Ondo which has a locked value of $1.45 billion that can act as a gauge of the development of the sector.

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