Ondo Finance, the real-world asset (RWA) tokenization platform, announced its integration with Block Street, the permissionless, unified liquidity layer for tokenized stocks, on Sep. 3.
Tokenization is the process of representing assets like stocks, funds, etc. as digital tokens and offering fractional ownership of these assets to investors. Besides digitizing the traditional finance (TradFi) market, it enables 24/7 on-chain trading and makes assets more affordable due to fractional offerings.
Related: What is tokenization? Explained
Though tokenized offerings have caught the attention of the market, they have remained rather static — assets that are traded but not deployed in trading strategies.
Block Street’s chain-agnostic hybrid liquidation engine offers an institutional-grade liquidity rail to these offerings to ensure real-time settlement.
The integration of these platforms makes way for tokenized stocks to act as composable decentralized finance (DeFi) primitives. It means tokenized offerings can become useful financial tools:
The latest integration bridges TradFi and DeFi in an impactful manner.
Ondo Finance CEO Nathan Allman said:
