Ondo Finance partnered with Chainlink to use its oracles. This strategic move will secure and scale the tokenization of RWAs globally.
Ondo Finance, a prominent tokenization platform, announced a landmark partnership. Alchemist Labs has partnered with Chainlink, a top oracle platform. This contract was signed on October 30 and made public. Furthermore, this move is supposed to be a bridge between traditional finance and blockchain. As such, the partnership will ensure the basis of tokenized assets.
Chainlink Becomes Official Oracle Provider for Ondo’s Assets
Tokenization is the essential process of using Blockchain technology. Rather, it is a digital projection of Real World Assets (RWAs) such as stocks. In addition, it opens the door to many investors to fractionally own these assets. Therefore, this process increases accessibility and liquidity to a very large extent. As a result, Chainlink will be the official oracle provider for Ondo’s tokenized securities.
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Furthermore, Chainlink officially became a member of the Ondo Global Market Alliance. In addition, this collaboration directly contributes to the increasing adoption of tokenized shares on-chain. Thus, Ondo Global Markets has become the largest platform with these assets. As a result, already over 100 tokenized assets are live on the platform.
Indeed, the platform currently has a Total Value Locked (TVL) of over $300 million. Therefore, using Chainlink’s institutional-quality data infrastructure is essential. Thus, prices for Ondo’s tokenized assets will be best-in-class and reliable as inputs. This can be seamlessly done in all supported blockchains.
On top of this, Chainlink offers custom and robust price feeds for each asset. In particular, these feeds are fed with all the events that involve economic and corporate actions. As a result, they follow the dividends and provide rich valuations on-chain. Furthermore, this maintains the highest level of data integrity of the securities. Thus, this partnership adds security and certainty to RWA valuations.
Collaboration Will Accelerate Institutional Adoption of CCIP Technology
Moreover, Ondo has one of the biggest institutional ecosystems. Specifically, it is an ecosystem of top financial institutions and top DeFi protocols worldwide. As a result, its assets are live on 10 blockchains and integrated in 100 applications. Therefore, the network has massive liquidity and composability.
As such, Ondo and Chainlink will now jointly collaborate with institutions. Therefore, they can use Ondo’s infrastructure to transfer assets on-chain. In addition, the two companies will work hand-in-hand to make CCIP the solution of choice. Thus, CCIP will take care of the cross-chain projects of traditional financial institutions. In addition to this, Ondo will be joining Chainlink’s corporate actions initiative right away.
Further, the project includes 24 of the largest financial institutions in the world. Some of these include giant companies such as Swift, DTCC, and Euroclear. As a result, the improved ecosystem has significantly improved interoperability. As such, the alliance well connects markets from the traditional and blockchain areas.
Nathan Allman, CEO and Founder of Ondo Finance, commented on the deal. He said they are watching the traditional and decentralized finance meeting. By using Chainlink, assets are composably linked. This composability is cross rail, both DeFi and institutional rails. Moreover, this is an update of an important milestone for the evolution of on-chain finance.
Ultimately, this adoption will enable Ondo Global Markets to be fully serviced by institutions. It facilitates the inclusion of asset managers and financial intermediaries in on-chain capital markets. As a result, the partnership opens up wholly new applications. Therefore, it speeds up the adoption of this technology in the enterprise a lot.
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