Ondo partners with Chainlink to help financial institutions access capital markets onchain.
Popular tokenization platform Ondo Finance announced a landmark strategic partnership with the prominent oracle platform Chainlink on Oct. 30.
Tokenization is the process of leveraging blockchain technology to digitally represent real-world assets (RWAs) like stocks, funds, etc. as tokens and offer fractional ownership of these assets to prospective investors.
Ondo hosts a large institutional ecosystem across leading global financial institutions and decentralized finance (DeFi) protocols.
Chainlink is an oracle network that connects smart contracts with real-world data, APIs, and traditional payment systems in a secure and reliable way.
Custom price feed for each tokenized offering
Ondo Global Markets offers more than 100 tokenized stocks and ETFs, with over $300 million in total value locked (TVL). Chainlink’s institutional-grade data infrastructure captures all economic factors, such as dividends, to directly deliver comprehensive valuations onchain.
The Chainlink oracle provides the latest custom and reliable price feeds for each tokenized equity, helping Ondo provide its tokenized offerings at prices with best-in-class data inputs across all supported blockchains.
Traditional financial institutions to go onchain
Ondo’s tokenized assets are available across 10 blockchains and integrated into more than 100 applications. Thanks to the latest collaboration, the two partners will work with institutional players to move their assets and operations onchain using Ondo’s tokenization infrastructure and Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
Chainlink CCIP allows different blockchains to talk to each other. It simply means CCIP lets smart contracts, apps, and tokens move easily across multiple blockchains.
Broadening access to onchain capital markets
With this partnership, Ondo Global Markets can leverage Chainlink’s interoperable technology to help interested financial institutions, asset managers, financial intermediaries, and protocol developers participate in onchain capital markets.
Ondo Finance founder and CEO Nathan Allman said,
“By adopting Chainlink as the official oracle infrastructure for our tokenized stocks we’re making our tokenized assets seamlessly composable across DeFi and institutional rails.”
“Ondo’s deployment of tokenized stocks using Chainlink showcases what institutional-grade tokenized stocks look like in production,” Chainlink co-founder Sergey Nazarov said.
“By securing its tokenized stocks with Chainlink, Ondo is redefining how traditional financial instruments can operate onchain in a programmable, composable, and globally accessible way. This is how we build the next generation of capital markets.”
Notably, Chainlink has joined the Ondo Global Market Alliance to support the growing adoption of tokenized stocks.
Ondo also joined Chainlink’s corporate actions initiative with 24 of the world’s leading financial organizations, including Swift, DTCC, and Euroclear.
