Ondo Finance has introduced the Ondo Network, a new execution layer built for financial markets that want the speed of centralized exchanges while preserving user privacy, transaction verifiability, and self-custody. The infrastructure is already live through Ondo Perps, the company’s recently launched perpetual futures platform, which is the first implementation of the new architecture.

The launch marks a departure from conventional blockchain design by separating trade execution from blockchain settlement instead of handling both functions on a single distributed ledger. In the new model, secure hardware enclaves execute applications privately and with near real-time performance, while asset transfers continue to settle on public blockchains. Ondo says this architecture offers a more practical foundation for expanding tokenized financial markets than relying only on traditional blockchain networks, especially as institutions and market participants look for systems that can handle higher throughput without giving up verifiability or user control.

The Ondo Network uses a hybrid architecture that separates trade execution from blockchain settlement, combining centralized-exchange speed with blockchain-based privacy, verifiability, and user control.

Trusted Hardware and Cryptographic Verification

The network relies on trusted execution environments, commonly known as enclaves, which run approved application code inside hardware-isolated environments. A decentralized group of independent attestors verifies the software running inside these enclaves, distributes fragments of critical cryptographic keys, and maintains secure connections with public blockchains.

According to the company, the design is intended to remove dependence on a single operator. Ondo says no individual participant can independently modify the approved software, reconstruct a complete cryptographic key, or transfer user funds. Each significant state transition also produces a signed and replayable log, enabling auditors and counterparties to verify that approved operational rules were followed.

Ondo said the architecture is designed to provide low-latency processing and confidential execution while replacing trust-based operational assurances with cryptographic verification suited to institutional financial applications.

The company argued that conventional blockchain designs often require unnecessary tradeoffs because execution, verification, and settlement all occur within the same system. Public blockchains provide transparency and immutable records, but replicating every operation across the network can slow processing and expose sensitive trading positions or order flow.

Ondo drops the chain @Ondo says the L1 it unveiled in February 2025, with Franklin Templeton, WisdomTree, Google Cloud and McKinsey among its design advisors, has evolved into the Ondo Network. In its own words, that network "isn't a blockchain today." Execution moves into… pic.twitter.com/jxXChA2Tbv — BSCN (@BSCNews) July 27, 2026

By keeping execution inside secure enclaves while preserving independently verifiable records, the Ondo Network seeks to address those limitations. Trading functions such as order matching, margin calculations, and liquidations can be processed privately without delaying execution for additional verification. Independent attestors validate the operating code in advance, while signed execution logs allow authorized participants to identify skipped orders, front-running attempts, or preferential order matching after execution.

The network uses trusted execution environments and decentralized attestors to deliver private, low-latency processing while ensuring every critical operation remains independently verifiable through cryptographic logs.

Designed for More Than Perpetual Futures

Ondo Perps is the first application deployed on the network. It offers perpetual futures trading backed by tokenized real-world assets as collateral, along with professional-grade execution, deep liquidity, privacy protections, and non-custodial asset control.

Ondo said the underlying infrastructure was built for a broader set of financial applications. Planned use cases include spot trading, lending markets, structured financial products, and transaction settlement systems, positioning the Ondo Network as general-purpose infrastructure for tokenized financial markets rather than a platform limited to derivatives trading.

The company also said it plans to add further capabilities, including permissionless bonded attestors, on-chain state settlement, external monitoring systems, selective privacy controls, enhanced cryptographic proofs, and proof-of-stake security mechanisms. Ondo said those additions are intended to expand decentralization while improving scalability and security.

The company’s long-term performance will depend on whether it can maintain its security guarantees, execution speed, and privacy protections as institutional adoption grows and transaction volumes increase.

By extending the infrastructure beyond derivatives trading to support lending, spot markets, structured products, and settlement rails, Ondo Finance said it aims to establish the Ondo Network as a scalable foundation for institutional-grade tokenized financial markets.

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