You may have heard this acronym RWA, right? If you want to briefly know what it is and how it relates to the ONDO token, listed in Bitso, here we will explain everything you need to know.
- What is RWA?
- RWA innovation in ONDO
- The ONDO Chain
- Key features of the Ondo Chain
- How to buy ONDO
- ONDO token unlocking event: What investors should know
- Why is this important for investors?
- Conclusion
What is RWA?
Real World Assets (RWA) represent traditional financial instruments such as real estate, bonds, or commodities that are digitized and tokenized on a blockchain. In other words, tokenization makes it possible to transform these assets into tokens that can be bought, sold or transferred. The tokenization of RWAs has gained relevance thanks to its ability to unlock liquidity, reduce transactional costs, and democratize market access for investors globally.
These benefits have motivated many companies to explore new ways to integrate traditional markets with blockchain technology. Ondo Finance stands as a leader in this transition, using tokenization to offer secure tools.
RWA innovation at Ondo
Enter Ondo Finance, the project that has worked to transform the tokenization of RWAs.
Ondo is redefining how institutional Real World Assets (RWAs) are integrated into decentralized finance (DeFi). This milestone not only highlights Ondo’s commitment to bridging the gap between traditional finance (TradFi) and blockchain innovation but also positions its native token, ONDO, as a key player in this fast-growing sector.
Investors can explore the purchase of ONDO tokens on Bitso.
This is particularly relevant in a market for tokenized assets that already exceed $35 billion in value. Their proposition includes solutions that meet strict regulatory standards, making them a reliable choice for institutional players.
The ONDO Chain
The launch of Ondo Chain on February 6, 2025, marked a new chapter for blockchain infrastructure focused on the institutional sector. Unlike more generalist chains such as Ethereum, Ondo Chain emerges as a layer 1 blockchain with a clear purpose and geared towards asset tokenization.
Its structure combines limited accessibility and security, ensuring that tokenized assets can operate under defined regulatory frameworks, which is essential for attracting traditional investors and financial organizations. This balance between innovation and regulatory compliance positions Ondo Chain as a key solution for institutions looking to leverage blockchain technology.
Key features of Ondo Chain
Ondo Chain has several functionalities that make it unique among blockchains of this type. Its key features include:
- Network of authorized validators: only pre-approved entities, typically regulated financial institutions, can validate transactions on the Ondo Chain. This ensures compliance with strict regulations and minimizes risks such as front-running and malicious activity.
- RWA-backed wagering mechanism: Validators can wager tokenized RWA or other low-risk assets to secure the network, aligning incentives with security and sustainability.
- Omnichain bridging functionality: Ondo Chain enables seamless asset transfers between compatible blockchain networks without relying on vulnerability-prone external bridging systems.
- Integrated Oracles and Proof of Reserve Systems: ensure data integrity by automatically verifying off-chain information, such as asset prices and reserve levels, through a consensus mechanism.
These features make Ondo Chain a hybrid solution that combines the best aspects of public blockchains with the enhanced compliance demanded by traditional financial institutions.
How to buy ONDO
If you are interested in purchasing ONDO, Ondo’s native token, here is a general guide on how to do so:
- Choose an Exchange: Find an exchange that offers ONDO, such as Bitso.
- Register an Account: Create your account on the exchange and complete the KYC (Know Your Customer) verification process.
- Deposit Funds: Add money to your account through bank transfers or cryptocurrency deposits.
- Locate ONDO Token: Go to the trading platform within the exchange and search for ONDO.
- Buy ONDO: Define the amount you wish to purchase and confirm the transaction.
The process is simple and accessible, allowing you to participate in the Ondo ecosystem with ease.
ONDO token unlocking event: What investors should know
On January 17, 2025, Ondo Finance released over 1.9 billion ONDO tokens that were restricted, worth approximately $2.4 billion. This unlocking significantly increased the amount of ONDO tokens in circulation.
Of the tokens released, 40% went to ecosystem growth and 42% to protocol development. Token unlocking events can, in some cases, drive prices down due to increased supply. However, after a previous unlocking, the price of ONDO rose significantly. Because of this, it is key for investors to be aware of these events and their impact on the market. [1]
Why is this important for investors?
For those interested in ONDO tokens or tokenized asset-based projects, these developments highlight three key drivers of opportunity:
- Market Growth: The tokenized asset sector is growing rapidly, promising great opportunities.
- Institutional Adoption: With the support of financial giants, there is a high potential to attract large-scale investments.
- Innovative Ecosystem: Ondo’s new features and products enhance utility and value within its network.
Conclusion
These initiatives represent a breakthrough for Ondo Finance and the asset tokenization industry. By solving traditional problems with blockchain innovation, Ondo is opening doors to wider adoption of decentralized solutions.
If you are looking to invest in decentralized finance development or tokenized assets, ONDO tokens offer an excellent opportunity to participate in this evolving space. With institutional backing and innovative features, Ondo Finance is positioned as one of the most promising projects to follow in the market and you can buy your tokens today on Bitso.
