Ondo Finance, a tokenized asset expert, has given up on developing a traditional layer-1 blockchain in favour of launching a trading network that it claims is more appropriate for the upcoming generation of onchain financial assets.
The system, known as Ondo Network, is a departure from the company’s February 2025 plan for Ondo Chain, a blockchain for tokenized real-world assets and institutional finance. The company said that after developing its new perpetual futures platform, Ondo Perps, it came to the conclusion that a conventional blockchain wasn’t the ideal solution for managing the speed and secrecy required by institutional trading.
CEO Ian de Bode said in a statement, “The Ondo Network is the continuation of what we set out to build with the Ondo Chain.” “When we looked at the real needs we had for the applications we were building, that’s where we ended up.”
The first application to use the network is Ondo Perps, which intends to use tokenized assets as trade collateral.
The change occurs as tokenization gains traction on Wall Street. As businesses seek to modernize capital markets with speedier settlement and round-the-clock trading, tokenization, the process of embodying conventional assets like stocks, bonds, and funds as blockchain-based tokens, is gaining popularity. Perpetual futures, which were previously mostly limited to cryptocurrency markets, are now being used for more conventional assets like equities and commodities like gold and oil.
According to rwa.xyz, Ondo has become one of the biggest issuers in the industry, with around $850 million in tokenized stocks and $2.6 billion in tokenized U.S. Treasury goods across OUSG and USDY. Last week, the company’s broker-dealer received FINRA clearance to introduce regulated tokenized securities markets and services.
Introducing the Ondo Network, the execution layer for open financial markets, and the evolution of our vision for Ondo Chain.
Fast and private like a CEX. Verifiable like a blockchain. Non-custodial in design.
How it works:
→ Enclaves for private, high-speed execution
→… pic.twitter.com/EQZkX2OWF3— Ondo Finance (@Ondo) July 27, 2026
The company’s next move from providing tokenized assets to creating the infrastructure for trading them is represented by the new network.
Rather of processing each deal on a public blockchain, Ondo Network isolates trade execution from settlement. While completed asset transactions settle on public blockchains, orders are processed confidentially for increased speed.
The strategy is intended to solve a major issue for institutional investors that wish to take advantage of blockchain settlement without disclosing their trading activities, holdings, or order flow to rivals.
According to Ondo, in addition to perpetual futures, the network may ultimately cover spot markets, loans, structured products, and settlement infrastructure.
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