Bringing US stocks and ETFs on-chain! Ondo founder Allman: Brokers are competing to cooperate, BlackRock and Goldman Sachs will participate in governance verification.

The tokenization product protocol Ondo Finance founder Nathan Allman stated in an interview on May 4 that the tokenization of real assets (RWA Tokenization) has become a major trend in the future of the financial market. He also revealed that traditional institutional giants such as BlackRock, Franklin, and Goldman Sachs have already entered the market, and even U.S. stock brokers have expressed their willingness to cooperate. He indicated that all assets will move towards instant settlement and borderless circulation in the next 10 years, and he is quite optimistic about the future development of Blockchain.

Ondo turns US treasuries into tokens? Nathan: Allow stablecoins to earn interest as well.

Allman stated that they initially chose "U.S. Treasury Bonds" as the on-chain asset because of its high liquidity and stable interest rates. They designed two products:

OSG: Open only to qualified investors

USDY: Similar to a stablecoin, but can earn interest, open secondary market circulation ( must go through KYC )

These products are called interest tokens (Yield Coins), which mainly provide a higher-level stablecoin option compared to USDC and USDT.

Plan to bring ETFs and US stocks on-chain to break the limitations of the global market.

Ondo is currently promoting the "Global Markets" platform, allowing global users to buy US stock ETFs just like they would at online brokerages such as Robinhood or Interactive Brokers, but all of this is done on-chain. Allman emphasized:

No need for a traditional brokerage account

24/7 Settlement, no T+2 delay

Easier cross-border transactions, not afraid of holiday delays.

(Ondo Finance has launched a tokenization asset trading platform called Ondo Global Markets, reshaping the landscape of traditional financial markets)

Self-built Blockchain Ondo Chain, institutions need to be "stable, secure, and manageable"

In order to attract institutional participation, Ondo Chain is created:

Adopting Cosmos technology with cross-chain governance capabilities.

Node validators need to undergo a review to avoid money laundering and front-running.

Support the minting and redemption of assets on multiple public blockchains like Ethereum (.

In the future, asset management firms such as BlackRock and Franklin will directly become node validators, participating in governance and verification.

Why not use Ethereum? It is too decentralized and therefore not suitable for RWA.

Regarding why we don't continue to use Ethereum )Ethereum(, Allman stated:

"Real-world assets are not the applications that prioritize decentralization the most."

The demand for RWA is stability, compliance with laws, and cooperation with financial institutions, rather than open governance.

He even said that although Ethereum still has TVL, its popularity in the application of RWA has gradually been replaced by other chains.

)Ondo Finance launches Ondo Chain: a full-chain network designed for tokenization of asset transactions(

Inspiration from DeFi Summer: one-click asset movement, no binding, fully combinable

Allman recalls his experiences during the DeFi Summer of 2020, believing that the "asset liquidity" of that time represents the future of finance:

All assets are stored in the wallet, one-click conversion platform.

No lock-up period, no binding contract restrictions.

Complete "composability", freely mix and match your own financial strategies

This kind of freedom should also be granted to traditional assets such as stocks and bonds.

Will regulations be an obstacle? In fact, they are much friendlier than one might think.

Allman stated that although there is still much debate about interest on stablecoins, as long as the product is designed correctly, for example, classified as a "security" rather than a "stablecoin", there is already a reasonable regulatory framework in place. He believes that regulation has become much friendlier now:

The SEC is now encouraging innovation, unlike former chairman Gensler.

Banks and brokerages have made a significant turnaround in their attitude, shifting from "prohibiting cooperation" to "eagerly seeking cooperation."

Stablecoin legislation is expected to be released within 4 to 6 months, opening the doors to compliance.

Can retail investors also become hedge funds? The biggest benefit of tokenization is the "democratization of finance".

Allman finally emphasized:

"The core of all this is to allow users around the world to enjoy high-end financial services at a low cost."

For example:

The prime brokerage services that were normally only available to hedge funds will soon be accessible to everyone.

You don't need 100,000 USD to buy US stocks or to allocate assets.

Break the monopoly of financial centers, allowing users in Asia and Africa to participate fairly in the US market.

Allman views the next 10 years positively, with all assets circulating globally and settling instantly.

Allman is very optimistic about the future. He believes that:

In 10 years, all assets will move towards instant settlement and global circulation.

Financial institutions will shift from opposition to embracing Blockchain.

The gap in service thresholds between retail investors and institutions will gradually disappear.

This article brings US stocks and ETFs on-chain! Ondo founder Allman: brokerages are competing to collaborate, BlackRock and Goldman Sachs will participate in governance verification. First appeared in Chain News ABMedia.