Ondo Finance Captures 60% of Tokenized Stock Market
Ondo Finance now controls 60% of the tokenized stock market, solidifying its leadership in the Real-World Asset (RWA) sector through key institutional partnerships and exchange listings. Despite its ecosystem dominance, the native $ONDO token has continued a long-term downtrend, creating a divergence between protocol success and token performance.
- A key driver of Ondo's growth is its deep integration with BlackRock's BUIDL tokenized fund; Ondo moved $95 million into BUIDL shortly after its launch, enabling 24/7 instant settlement for its own OUSG token and moving away from the traditional T+2 settlement of its previous ETF-backed model. - Beyond its dominance in tokenized stocks, Ondo Finance is also the largest issuer of tokenized U.S. Treasuries, with its products OUSG and USDY representing approximately $2 billion of its more than $2.5 billion in total value locked (TVL) as of January 2026. - The divergence between protocol growth and token price is partly linked to the ONDO token's design as a governance token for the Ondo DAO, without direct value accrual mechanisms like fee-sharing, and significant token unlocks, such as the 1.94 billion tokens released in January 2025. - Ondo is expanding from an application to a full-stack ecosystem by building Ondo Chain, a new Layer 1 blockchain specifically for real-world assets that will feature permissioned validators, with an advisory group that includes Franklin Templeton, Wellington Management, and Google Cloud. - The firm's institutional reach extends beyond asset management, including a partnership with Mastercard to bring its OUSG token to the Mastercard MTN network and a cross-chain settlement test with J.P. Morgan's Kinexys unit. - The Ondo Global Markets platform, which facilitates tokenized stock trading, is targeted at qualified non-U.S. investors and integrates with infrastructure from Chainlink for price feeds and LayerZero for cross-chain transfers to chains like Solana and BNB Chain.
