Ondo Finance has launched the Ondo Network, replacing its planned blockchain with an execution layer built for fast, private, and non-custodial trading.

Summary

  • Ondo Network replaces Ondo Chain as the company shifts its focus from settlement to execution.
  • Secure hardware enclaves process trades privately, while decentralized attestors verify the approved code.
  • Ondo Perps is the first application, supporting 24/7 equity and commodity perpetual futures.
  • Recent FINRA authorizations give Ondo separate infrastructure for regulated tokenized securities in the U.S.

Ondo Network replaces the planned Ondo Chain

Ondo Finance publicly introduced the Ondo Network on July 27, describing it as an execution layer that combines centralized exchange-like speed with self-custody, privacy and blockchain-based settlement.

Ian De Bode, CEO of Ondo Finance, described the product as an evolution of Ondo Chain, a previously announced Layer 1 blockchain designed for tokenized real-world assets. Ondo will not operate both systems at the same time.

“I’d frame it more as an evolution, but we will not be running the Ondo Network and the Ondo Chain in parallel.”

Ondo changed its approach while building Ondo Perps and consulting potential users. According to the company, those discussions showed that execution speed, rather than settlement capacity, was the main obstacle preventing onchain trading platforms from competing with centralized exchanges.

Traditional blockchains generally execute, verify, and settle transactions through the same public ledger. That structure provides transparency and a durable transaction history but can expose order flow and slow applications that require rapid trade matching.

The Ondo Network separates these functions, allowing trade execution to occur away from a public ledger while asset transfers still settle onchain.

How Ondo Network verifies private execution

Applications on the network run inside trusted execution environments, also known as secure hardware enclaves. These isolated environments process application code without revealing sensitive information, such as open positions and order flow, to the public.

A decentralized group of attestors determines which code the enclaves may run. The network also uses a multi-party structure under which no single operator can approve unauthorized code, reconstruct a signing key, or independently transfer user assets.

Asset transfers currently settle on Ethereum, while Ondo plans to support other public blockchains. The network’s settled state remains inside the enclaves for now, but the company intends to commit that record to public blockchains as the system develops.

Ondo also plans to introduce more attestors, independent watchers, bonded participation, and additional cryptographic proofs. The ONDO token is expected to support incentives and governance as those responsibilities become more decentralized.

The system is general-purpose rather than limited to trading. Ondo said developers could use it for spot markets, lending, structured products, settlement systems and non-financial applications requiring fast and verifiable private execution.

Ondo Perps becomes the first network application

Ondo Perps is the first application running on the network. The platform provides round-the-clock perpetual futures linked to equities and commodities while allowing traders to use tokenized real-world assets as collateral.

Perpetual futures allow users to take leveraged long or short positions without a fixed expiry date. The product launched earlier in July for users outside the United States and supports up to 20 times leverage on selected markets.

The platform’s initial role demonstrates how Ondo wants to use the network: trading takes place privately at near-centralized-exchange speeds, users retain control of their funds and transfers settle through public blockchain infrastructure.

Ondo said the network launch does not immediately alter the ONDO token’s role. The asset remains the governance and ecosystem token for the company’s real-world asset and market infrastructure.

Ondo (ONDO) traded near $0.40 following the announcement, up 1.1% over the past 24 hours with a market capitalization of approximately $1.96 billion, according to data from CoinGecko.

FINRA permissions support a separate U.S. rollout

Ondo’s network launch follows new U.S. regulatory permissions for Oasis Pro Markets, its SEC-registered broker-dealer subsidiary.

Oasis Pro received FINRA authorizations covering National Market System stocks, ETFs, mutual funds, index funds and securities issued through initial public offerings. The permissions cover activities including retail over-the-counter transactions, private placements and underwritten primary offerings.

The framework also supports settlement through fiat currencies or selected stablecoins, including transfers between blockchain wallets. It could allow eligible U.S. retail and institutional investors to access tokenized securities through existing brokers, advisers and retirement accounts.

However, the permissions do not automatically make Ondo Perps or every existing Ondo product available to U.S. residents. They provide regulated infrastructure through Oasis Pro Markets for securities offered under SEC and FINRA oversight, while individual products remain subject to separate eligibility and compliance requirements.





Source link

Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *