Ondo Finance has successfully executed a $10 million tokenized redemption on the BNB Chain, marking a pivotal moment for onchain equities. This transaction showcases how institutional-grade operations are evolving within the blockchain space.
The redemption was conducted in increments of approximately one million dollars each, finalized transparently on the blockchain, and incurred a mere two cents in network fees. This development is particularly noteworthy for investors keen on the convergence of traditional financial markets and blockchain technology.
At the heart of this initiative is Ondo Global Markets, the division responsible for facilitating tokenized equities and exchange-traded funds (ETFs). Tokenized stocks represent digital formats of real shares, designed to reflect the value and rights associated with their underlying assets while functioning on blockchain infrastructure. In this instance, Ondo managed a substantial redemption involving NVIDIA shares, leveraging direct access to liquidity from major exchanges such as the New York Stock Exchange and Nasdaq.
This direct connection is critical as it enables Ondo to execute large trades with minimal market disruption, known as low slippage, even at an institutional scale. To illustrate, executing a $10 million equity transaction in traditional markets can be a protracted process, especially amid limited liquidity. It often requires multiple intermediaries and can lead to settlement delays of up to two business days. In contrast, Ondo”s onchain executions are settled in a matter of minutes, with every transaction step verifiable on the blockchain.
In addition to this milestone, Ondo Finance has introduced the Ondo Bridge, a tool aimed at enhancing cross-chain interoperability for onchain securities. This bridge is currently operational on both Ethereum and BNB Chain, enabling users to transfer over 100 tokenized stocks and ETFs across different chains while ensuring one-to-one asset parity.
Developed in partnership with LayerZero and secured by a decentralized network of verifiers, including Canary, the bridge operates through Stargate Finance. This infrastructure allows a multitude of applications on Ethereum and BNB Chain to seamlessly incorporate Ondo”s tokenized assets, facilitating rapid expansion to other EVM-compatible chains.
The information contained in this article is for educational and informational purposes only and should not be construed as financial advice. It is essential for investors to conduct thorough due diligence before making any investment decisions.
