Decentralized finance (DeFi) is a growing field within the greater cryptocurrency marketplace. Though there are a number of players involved, a handful of companies have managed to grab the attention of the greater public. Ondo Finance is one of those.
Though most focus on an Ondo price prediction, there is a lot more than meets the eye. How does Ondo work and what are its unique features? Learn everything you need to know about the Ondo network and whether it is a viable investment in the future.
What is Ondo (ONDO)?
Ondo Finance is a decentralized finance (DeFi) platform. Among the core features, its blockchain technology works to bridge DeFi and traditional finance (TradFi). Created in 2020 and launched in 2021, Ondo has a focus on the tokenization of real-world assets (RWAs). These real-world assets include bonds, money market funds, and U.S. Treasuries.
Simply put, Ondo Finance is able to offer institutional-grade financial products to a wider audience. Its native token, ONDO, is the governance token for the Ondo decentralized autonomous organization (DAO). This gives voters the ability to vote on things like protocol upgrades and ecosystem management.
At the heart of the platform is the goal of promoting financial inclusivity. Through greater efficiency and transparency within the DeFi space, Ondo is able to provide the reliability of traditional financial institutions, completely changing how investors are able to interact with those stable assets.
Who are the Founders of Ondo (ONDO)?
Ondo Finance was created in 2020, co-founded by Pinku Surana and Nathan Allman. The platform was officially launched in 2021, bringing traditional financial markets into an on-chain world.
Though Surana is still listed as a co-founder, it is unclear what his current role with the company is. Allman is the CEO of the company with Justin Schmidt serving as President and Ian De Bode acting as the Chief Strategy Officer.
What Makes Ondo (ONDO) Unique?
When looking at why a particular token is valuable, it helps to look at the key features. When it comes to Ondo, several key features drive its value forward. Let’s take a look at three of the biggest features of Ondo Finance.
Tokenization of Real-World Assets
At the very heart of the Ondo platform is the ability to tokenize real-world stable assets. This includes money market funds and U.S. Treasuries, featuring products like OUSG, OMMF (a tokenized BlackRock money market fund), and USDY.
These assets are quite a bit safer and more transparent than other stablecoins like USDC/USDT. Ondo has daily third-party reporting, regulatory compliance, and bankruptcy isolation. This provides a safer, more accessible means to traditional finances than ever before.
Risk-Adjusted Investment Options
One of the most unique aspects of Ondo Finance is the tranche system. This gives users the ability to choose between low-risk, fixed-yield investments or high-risk, variable-yield options. Having such a diverse array of options means meeting the diverse needs of investors.
For the more traditional buy-and-hold investment strategies, OUSG would be ideal. For those looking for a yield-based, daily profit distribution, rOUSG is a better route. But it wouldn’t be possible without the risk-adjusted investment options that Ondo makes available.
Enshrined Oracles
In addition to validating blockchain transactions in Ondo Chain, validators are also tasked with publishing critical off-chain data like interest rates, asset prices, and market indices. This helps ensure that all information within the Ondo Chain is trusted, accurate, and current.
Through the use of enshrined oracles, the risk of manipulation or potential errors that could impact the accuracy or security of transactions within the chain has been greatly reduced. Even better, the scalability of Ondo Chain has been greatly improved. As more assets and key data points continue to pile up, investments and their ability to scale only grow.
Governance and Regulatory Compliance
Holders of ONDO are able to participate in the overall governance of the Ondo network. Holders are able to vote on proposals that ultimately shape the future of the platform. Though this is not necessarily different from other platforms, it is key to community participation.
The Ondo network also makes use of TradFi practices like KYC/AML investor protections. Products like USDY provide guaranteed claims on reserves, which helps distinguish ONDO from far less transparent stablecoins.
How Many Ondo (ONDO) Coins are There in Circulation?
When ONDO, the native token of the Ondo Network, was launched, 10 billion tokens were created. In the few years since, the majority of ONDO tokens still remains undistributed to the public.
As of today, there are 3.159 billion ONDO tokens currently circulating to the public. One of the things to keep an eye on is a potential burning mechanism. Tons of platforms have implemented token burning to bring down the total supply, creating rarity, which helps drive value up.
How is the Ondo Network Secured?
Ondo has since upgraded to a layer-1 blockchain with the purpose of supporting institutional-grade real-world assets. Given natural infrastructure barriers that prevent the widespread use of tokenized securities, Ondo Chain is able to tackle these and benefit the investor in the end.
The biggest way that the network is secured is through permissioned validators. Validators within Ondo Chain are permissioned and will be subject to regular monitoring in order to ensure compliance and integrity based not on cryptocurrency requirements, but institutional ones.
RWA staking combined with permissioned validators ensures that the network is secure and that institutional capital can be used for critical components. Validators can also publish key off-chain data, which ensures real-time information that is published in a trusted, accurate way.
There is also the matter of proof of reserves and collateral. There is a small subset of Ondo Chain validators that automatically verify directly with broker dealers or custodians to ensure that the balances of every RWA token are fully backed by that underlying asset. This ultimately mitigates the risks of misreporting or under-collateralization.
Ondo Ecosystem
As a major name in decentralized finance, Ondo Finance has a few key features that make its network desirable. Ondo Chain has several key ecosystem features that make it a desirable place to be for crypto and decentralized finance investors. Let’s take a look at a few of the most notable features from the Ondo ecosystem.
DeFi Applications
Without a doubt, the most awesome feature of the Ondo ecosystem is that it is home to several DeFi applications. Users are able to create applications within the DeFi space, even controlling access and permissions from those applications.
Because of this, Ondo Chain is able to offer institutional-grade network security across all platforms. Backed by Ondo’s blockchain, permissioned validators work to not only secure Ondo’s network but to develop applications that further the transition into the DeFi space.
Off-Chain Connectivity
A major downside to investing in cryptocurrency these days is that not all chains are connected. Ondo Finance is working to help bridge that gap. Through Ondo Bridge, it becomes possible to bridge tokens to other chains without having to fall victim to hacking or other limitations of more traditional blockchains.
Security for these off-chain connections is performed by Ondo Chain validators. Using their own decentralized verifier network (DVN), in addition to other DVNs, means that it is easier for developers to ultimately create omnichain applications, acting as a ‘source of truth’ for the most vital pieces of information.
Open Access
One of the biggest features of Ondo Chain is that it is an open access platform. This gives users of the chain the ability to issue tokens, develop apps, or act as an investor or user. With user permissions and identification as key features, issuers of assets and application developers are able to implement transfer restrictions and permissions at a contract level.
This ultimately provides greater support and flexibility to the network. Given the staking requirements of the platform, this encourages users to do all they can to better the network and taken Ondo Finance to the next level.
FAQs
What is the technology behind Ondo?
The key to Ondo has to do with its smart contracts. These contracts tokenize real-world assets, ensuring immutability and transparency. These tokenized notes are backed by U.S. treasuries and bank deposits.
The Ondo Chain offers institutional-grade security features through RWA staking, utilizing validators that automatically verify critical off-chain data like proof of reserves and asset prices. Permissioned validators even include financial institutions. Validators are monitored to support best execution and prevent front-running.
What are the real-world applications of Ondo?
The biggest thing that Ondo offers is the tokenization of real-world assets. Its ecosystem is the home to several real-world asset-based DeFi applications on the Ondo Chain. In addition to onchain asset management, Ondo offers cross-chain token issuance as well.
Ondo also works to bridge the gap between traditional finance (TradFi) and DeFi. With prime brokerage, stablecoin distribution, and even bootstrapping new networks, Ondo is home to a litany of tools that bring together the worlds of old and new finance.
What key events have there been for Ondo?
Ondo’s creation came in 2020 with an official launch coming for Ondo Finance in July 2021. Later that year, in November, the platform began offering liquidity-as-a-service (LaaS) as part of a partnership with Fei Protocol. It later expanded LaaS partnerships to Angle Protocol and Frax Finance.
In 2023, Ondo launched real-world asset-backed tokens, including OUSG, a U.S. treasury. Ondo Bridge was launched in November 2023, offering cross-chain transfers. In February 2024, it introduced Ondo Global Markets, an on-chain means for accessing traditional securities. Finally, it launched a massive initiative with Pantera Capital, acquiring Oasis Pro and Strangelove in July 2025.
What is the highest and lowest price for Ondo (ONDO)?
Since its launch in 2020, ONDO has seen major changes in its price history. The all-time low for ONDO came on January 18, 2024, falling to $0.08355 per token. Nearly a year later, on December 15, 2024, ONDO hit its all-time high price of $2.14.
What is the fully diluted valuation of Ondo (ONDO)?
In order to determine the fully diluted valuation of a token, we must consider two factors. The first is the current market price. That can and will shift on a day-to-day basis. The other factor is the total supply of tokens available.
There were 10 billion ONDO tokens created when the network launched. At a current market price of $0.98 per token, the fully diluted valuation of ONDO is $9.88 billion.
How much has the price of ONDO changed over the past year?
Ondo has seen a roller coaster-like ride in terms of price over the past year. At the beginning of August 2024, Ondo was trading at about $0.65 per token. It remained steady until December, when it shot up massively. At its highest point, ONDO hit $2.05 per token.
Since then, prices have settled. ONDO had a steady decline until roughly April, when it began seeing a slight uptick. It is now on the verge of hitting $1.00 per token again, sitting at $0.98 per token as of August 2025.
What affects Ondo price?
Ondo adheres to factors that impact its price just like any other form of cryptocurrency. Perhaps the biggest factor impacting Ondo is adoption. The more people that use the core services, the more popular it is. It is part of the reason why Bitcoin, Ethereum, and other major names are so valuable.
Ondo is also responsible for keeping up with technological demands, especially in the growing DeFi world. Finally, there is the matter of volatility within the cryptocurrency marketplace. Investor confidence plays a substantial role in crypto prices and Ondo is at the mercy of the marketplace just like any other token.
