Ondo drops tokenized asset blockchain plans for private, high-speed trading network

The new network powers Ondo's recently launched perpetual futures platform and will eventually support trading across onchain financial assets.

Ondo Finance has abandoned plans for a traditional layer-1 blockchain and instead launched Ondo Network, a trading platform it says is better suited to institutional needs.

The first application, Ondo Perps, will let users trade perpetual futures using tokenized assets as collateral, separating fast, private trade execution from settlement on public blockchains.

The pivot comes as Ondo, already a major issuer of tokenized U.S. Treasuries and equities, moves to build broader trading infrastructure amid growing Wall Street interest in tokenization and 24/7 markets.

Tokenized asset specialist Ondo Finance ONDO $ 0.3952 has abandoned plans to build a conventional layer-1 blockchain, instead introducing a trading network it says is better suited for the next wave of onchain financial assets.

Dubbed Ondo Network, the system marks a shift from the company's February 2025 vision for Ondo Chain, a blockchain for institutional finance and tokenized real-world assets. After building its new perpetual futures platform, Ondo Perps, the firm said it concluded that a traditional blockchain wasn't the best tool for handling the speed and privacy institutional trading requires.

“The Ondo Network is the continuation of what we set out to build with the Ondo Chain,” CEO Ian de Bode told CoinDesk in a message. “It's where we landed when we looked at the actual needs we had for the applications we were building.”

Ondo Perps is the first application using the network, with plans to offer tokenized assets as collateral for trading.

The pivot comes as tokenization gathers momentum across Wall Street. Tokenization — the process of representing traditional assets such as stocks, bonds and funds as blockchain-based tokens — is gaining traction as firms look to modernize capital markets with faster settlement and around-the-clock trading. At the same time, perpetual futures, once largely confined to crypto markets, are expanding to traditional assets such as stocks and commodities like oil and gold.

Beyond issuing tokenized assets

Ondo has emerged as one of the sector's largest issuers, with about $2.6 billion in tokenized U.S. Treasury products across OUSG and USDY and roughly $850 million in tokenized equities, according to rwa.xyz. The firm’s broker-dealer obtained last week FINRA approval to launch regulated markets and services for tokenized securities.

The new network represents the company's next step in moving beyond issuing tokenized assets to building the infrastructure for trading them. For institutions that want blockchain-based settlement, that distinction matters: a system optimized for execution and a separate settlement layer can reduce the operational friction that often comes with moving large, sensitive orders on a public chain.

Ondo Network separates trade execution from settlement instead of processing every trade on a public blockchain. Orders are executed privately for greater speed, while finalized asset transfers settle on public blockchains.

The approach is designed to address a key concern for institutional investors, who want the benefits of blockchain settlement without exposing their trading activity, positions or order flow to competitors.

Ondo said the network could eventually support spot markets, lending, structured products and settlement infrastructure alongside perpetual futures, giving the company a broader base to build on as tokenized markets expand.

UPDATE (July 28, 21:01 UTC): Adds remark from Ondo Finance CEO Ian de Bode.