Ondo Finance in 2025: New Chain, Regulatory Wins, Major Bank Ties & More

Ondo Finance has experienced significant growth in 2025, launching Ondo Chain, securing regulatory approvals in the U.S. and EU, and forming partnerships with major institutions including J.P. Morgan, Fidelity, and Chainlink. Key developments include a $250 million investment fund with Pantera Capital, integration with multiple blockchain networks, and the closure of an SEC investigation confirming the ONDO token is not classified as a security.

Real-world asset tokenization converts traditional financial instruments like stocks, bonds, and U.S. Treasuries into blockchain-based tokens. These tokens represent ownership of actual underlying assets held in regulated custody. Unlike synthetic products, tokenized RWAs provide direct exposure to the asset itself while using blockchain infrastructure for faster settlement and 24/7 access.

What Is Ondo Chain and Why Does It Matter?

In February, Ondo Finance announced Ondo Chain at its inaugural Ondo Summit. This Layer 1 blockchain network addresses specific problems that prevent traditional financial institutions from using public blockchains for tokenized securities.

The infrastructure challenges that Ondo Chain targets include compatibility issues between DeFi protocols and public securities, liquidity fragmentation across multiple blockchains, unstable transaction fees paid in volatile cryptocurrencies, security vulnerabilities in cross-chain bridges, and regulatory concerns that keep institutions away from public blockchain networks.

Ondo Chain uses a hybrid approach that combines aspects of public and permissioned blockchains. The network operates with the following technical features:

• Validators stake high-quality RWAs instead of volatile cryptocurrencies, reducing exposure to crypto price fluctuations
• Only regulated financial institutions and vetted entities can serve as validators, eliminating front-running risks and malicious MEV strategies
• Native support for tokenized RWAs with continuous verification of asset backing by validators
• Built-in cross-chain interoperability that removes dependence on third-party bridge providers
• Two-tier governance structure allowing both financial institutions and blockchain stakeholders to oversee network decisions

The network allows staking of tokenized RWAs to stabilize transaction fees, addressing the cost unpredictability that comes from using volatile native tokens like ETH. This design makes it easier for regulated firms to participate without holding cryptocurrency directly.

Ondo Complete a Cross-Chain Transaction with J.P. Morgan

Ondo Finance, Chainlink, and Kinexys by J.P. Morgan completed a cross-chain Delivery versus Payment transaction, marking J.P. Morgan's first settled deal on a public blockchain. The transaction settled tokenized U.S. Treasuries on Ondo Chain while processing payments on Kinexys Digital Payments' permissioned network.

Delivery versus Payment is a settlement process where the transfer of securities and payment happen simultaneously. This eliminates counterparty risk by ensuring neither party can receive one without delivering the other. Traditional DvP settlement in financial markets typically takes one to two days. The blockchain version completes in real time.

Chainlink provided the cross-chain orchestration infrastructure, connecting J.P. Morgan's private blockchain environment with Ondo's public Ondo Chain. This technology enables real-time coordination between different blockchain networks, allowing institutions to maintain their permissioned systems while interacting with public blockchains.

J.P. Morgan previously conducted blockchain trials on private networks, including a 2024 test with Siemens.

What Is the Ondo Catalyst Fund?

Ondo Finance and Pantera Capital launched a $250 million initiative called Ondo Catalyst in 2025. The fund invests in startups and protocols building tokenized financial products and infrastructure.

Nathan Allman, Founder and CEO of Ondo Finance, described the initiative as supporting the transition from closed, permissioned systems to an open, onchain economy. Pantera Capital, one of the earliest institutional investors in blockchain, is anchoring the fund.

Paul Veradittakit, Managing Partner at Pantera Capital, called tokenization of traditional financial assets the largest infrastructure shift since electronic trading. The firm will independently evaluate market opportunities while Ondo Catalyst specifically backs projects integrating into the Ondo ecosystem.

The fund targets projects developing tokenized financial instruments, developer platforms and DeFi protocols for tokenized assets, and infrastructure including compliance, identity, custody, and data layers. Ondo is actively seeking founders and teams building these products.

The company is engaged in ongoing discussions with U.S. policymakers to help create frameworks around tokenized assets. This regulatory engagement aims to bring legitimacy and compliance infrastructure to the tokenization sector.

Which Major Platforms Joined Ondo's Ecosystem?

BNB Chainpartnered with Ondo Finance to support more than 100 tokenized assets, including U.S. equities, ETFs, and mutual funds. The real-world assets sector is expected to exceed $100 billion in value by 2026.

BNB Chain users can now access tokenized versions of over 100 U.S. stocks, ETFs, and mutual funds as BEP-20 tokens. These assets provide 24/7 access to financial instruments traditionally locked behind brokerage walls or regional restrictions. The integration brings fully regulated products backed by real-world equivalents and supported by institutional-grade infrastructure.

BNB Chain joined Ondo's Global Markets Alliance, a group of wallets, exchanges, custodians, and protocols working to establish shared standards for tokenized securities. The alliance includes major players such as BitGo, 1inch, Fireblocks, Trust Wallet, and the Solana Foundation.

Bitget, one of the world's largest cryptocurrency exchanges, also joined the Global Markets Alliance. The partnership gives Bitget's global user base regulated access to tokenized U.S. stocks, ETFs, and money market funds. The offering launched later in the summer and includes over 100 financial instruments in tokenized form.

Gracy Chen, Bitget CEO, stated that tokenization will drive the next phase of digital asset adoption. The platform allows users to build portfolios combining volatile crypto assets with stable, yield-generating instruments like ETFs and U.S. Treasuries through one interface.

PancakeSwap, a decentralized exchange built on BNB Chain, joined the Global Markets Alliance in October. The coalition now includes over 30 blockchain and finance companies working to set common standards for tokenized RWAs.

What Does Ondo Global Markets Offer?

In September, Ondo Finance launched Ondo Global Markets, a platform allowing non-U.S. investors to buy and sell tokenized versions of U.S. stocks and ETFs onchain. The service launched on Ethereum with more than 100 tokenized assets and plans to expand to over 1,000 by the end of 2025.

The platform serves international investors across Asia-Pacific, Europe, Africa, and Latin America. Users in the United States and the United Kingdom are excluded due to regulatory restrictions.

Each token is fully backed by the corresponding stock or ETF held with U.S.-registered broker-dealers. When an investor purchases a tokenized Apple share, the platform acquires the underlying Apple stock. The custodian holds the asset, and the investor receives a tokenized version representing full economic exposure.

These tokens work as total return trackers, meaning dividends and other corporate actions are reflected in the onchain token's price. Investors can mint or redeem tokens with stablecoins at the underlying market value during trading hours and transfer them across wallets and protocols 24/7.

The platform integrates with major crypto infrastructure providers:

• Wallets: Bitget Wallet, Trust Wallet, OKX Wallet, Gate, Ledger
• Custodians: BitGo, Fireblocks
• Liquidity: 1inch, Block Street
• Oracles: Chainlink for price feeds
• Cross-chain: LayerZero for interoperability

How Did Fidelity Enter Tokenized Assets?

On September 9, Fidelity Investments launched its tokenized money market fund, the Fidelity Digital Interest Token (FDIT), on the Ethereum blockchain. The largest investor in FDIT is Ondo Finance's Ondo Short-Term US Treasuries Fund (OUSG), which represents over 99% of the fund's assets.

FDIT is the tokenized version of the Fidelity Treasury Digital Fund. The fund primarily invests in U.S. Treasury bills. Early blockchain data from Etherscan shows approximately $202 million in FDIT was minted in early September.

Ondo launched its OUSG fund in January 2023, offering investors onchain access to U.S. Treasuries. The product has grown to over $730 million in total value locked. OUSG provides instant, 24/7 subscriptions and redemptions, daily interest accruals, low fees, and multi-chain support across Ethereum, Solana, Ripple, and Polygon.

The OUSG portfolio now includes assets from multiple managers: BlackRock (BUIDL), Fidelity (FDIT), Franklin Templeton (BENJI), WisdomTree (WTGXX), and Wellington Management/FundBridge Capital (ULTRA).

What Regulatory Approvals Did Ondo Receive?

Ondo Finance completed its acquisition of Oasis Pro in October, gaining ownership of an SEC-registered broker-dealer, an Alternative Trading System, and a Transfer Agent license. The acquisition enables Ondo to operate fully regulated tokenized securities markets in the United States.

Oasis Pro has been a FINRA member since 2020 and contributed to the FINRA Crypto Working Group. The company operates an SEC-registered broker-dealer and ATS, along with Transfer Agent services. The platform enables issuance and settlement of tokenized securities in both fiat and stablecoins, including USDC and DAI.

Through this acquisition, Ondo inherited capabilities for tokenizing real-world assets, managing capitalization through a digital asset transfer agent, operating a primary offering marketplace, running a multi-asset secondary trading system, and conducting capital markets activities including private placements and underwriting.

In November, Ondo Finance received full regulatory approval from Liechtenstein's Financial Market Authority to offer tokenized stocks and ETFs to retail investors across the European Union and the broader European Economic Area. The approval extends to all 30 EEA countries through passporting rules.

Ondo Global Markets can now offer tokenized versions of U.S. stocks and ETFs to more than 500 million retail investors across Europe. The framework covers the EU, Iceland, Norway, and Liechtenstein under existing investor-protection rules and European financial supervision standards.

The platform holds more than $315 million in total value locked and has processed over $1 billion in trading volume since launch. This approval expands its reach from crypto users to Europe's entire retail investing public.

SEC Investigation Concludes

The U.S. Securities and Exchange Commission closed its investigation into Ondo Finance in December without filing any charges. This ends a two-year review of the company's tokenization activities and confirms the ONDO token will not be treated as a security based on this inquiry.

The investigation began in 2024 during a period when several crypto firms faced enforcement actions. The SEC examined whether Ondo's tokenized U.S. Treasuries and tokenized equities followed federal securities laws. The agency also evaluated whether the ONDO token should be classified as a security.

The closure reflects a shift in Washington's approach to digital assets since Paul Atkins became SEC chairman. Several high-profile cases have been dismissed or withdrawn, including lawsuits against Coinbase and Kraken, and investigations into Robinhood Crypto and Uniswap Labs were dropped.

Tokenization now appears on the SEC's official agenda. The agency is studying how tokenized securities could modernize the mechanics of trading, clearing, and settlement.

What Is the SWEEP Fund?

SWEEP is a tokenized liquidity fund created by Ondo Finance, State Street Investment Management, and Galaxy Asset Management. The fund announced last December, targets a launch on Solana in early 2026 and will accept subscriptions and redemptions in PYUSD, a regulated stablecoin issued by Paxos. Only Qualified Purchasers can access the product.

The State Street Galaxy Onchain Liquidity Sweep Fund is designed for institutions that want to hold cash-like assets onchain while maintaining quick redemption windows. Sweep funds traditionally let investors park idle cash in short-term instruments while keeping quick convertibility.

Ondo Finance committed about $200 million as seed capital for the launch. Kim Hochfeld, Global Head of Cash and Digital Assets for State Street Investment Management, said joint efforts between traditional finance and DeFi players will have far-reaching impact on the future of asset management and capital markets.

SWEEP strengthens OUSG by offering another high-quality reserve component. OUSG intends to become the lead anchor investor in the fund, which will diversify its existing holdings, deepen its liquidity, and improve redemption capacity during periods of high onchain demand.

Will Ondo Launch on Solana?

Ondo Finance announced plans in December to launch a tokenized stock and ETF platform on the Solana blockchain in early 2026. The platform will allow users to trade U.S.-listed stocks and ETFs around the clock, with settlement completed in seconds instead of days.

Ondo's decision to deploy on Solana is tied to performance requirements. Solana is designed for high transaction throughput and low latency. For continuous trading and near-instant settlement, network speed is essential.

As of late 2025, Ondo has issued roughly $365 million in tokenized assets. According to data from RWA.xyz, this makes Ondo the largest issuer in the tokenized real-world asset sector. The next largest provider, Backed Finance, held about $162 million in tokenized assets before being acquired by Kraken.

Traditional stock markets operate on fixed schedules and rely on multi-day post-trade settlement systems. Ondo's model keeps trading open at all times, including weekends and holidays, while using blockchain infrastructure to finalize ownership changes almost immediately.

Conclusion

Ondo Finance has established itself as the leading tokenized real-world asset issuer in 2025, managing over $365 million in tokenized securities across multiple blockchain networks. The company operates regulated infrastructure in both the United States and the European Economic Area, providing institutional and retail investors access to tokenized U.S. Treasuries, stocks, and ETFs.

The platform supports 24/7 trading and near-instant settlement through partnerships with major financial institutions including Fidelity, J.P. Morgan, and State Street. Ondo's technical infrastructure spans Ethereum, Solana, BNB Chain, Ripple, and Polygon, with native cross-chain capabilities through Ondo Chain and integration with Chainlink's oracle network.

With regulatory approvals secured, an SEC investigation closed without charges, and a $250 million development fund deployed, Ondo Finance has built the compliance framework and institutional partnerships needed to scale tokenized securities. The company's acquisition of Oasis Pro and integration with over 30 ecosystem partners through the Global Markets Alliance positions it to operate regulated tokenized asset markets across major jurisdictions.

Resources

1. Ondo Finance on X : Posts in 2025

2. Ondo Finance blog: Announcements in 2025

3. Report by CoinDesk: State Street and Galaxy to Launch Tokenized Liquidity Fund on Solana in 2026

4. Press release: Bitget Joins Ondo’s Global Markets Alliance to Expand Global Access to Over Hundred Tokenized RWAs