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Ondo and LayerZero Launch New Bridge for Onchain Securities on Ethereum and BNB Chain

Highlights:

  • Ondo and LayerZero have introduced a new bridge, enhancing the transfer of tokenized stocks and ETFs across chains.
  • The new bridge has already gone live on Ethereum and BNB Chain networks. 
  • Ondo said it will roll out more networks that are compatible with the EVM. 

Decentralized Finance (DeFi) platform Ondo has launched a new cross-chain bridge, enabling users to transfer tokenized stocks and exchange-traded funds (ETFs) across different blockchains. Ondo announced the latest innovation in a press release on December 17, noting that it is built on LayerZero and is already live on Ethereum and BNB Chain. 

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Ondo plans to add more networks that are compatible with the Ethereum Virtual Machine (EVM) in the future. The launch comes a few days after the US Securities and Exchange Commission (SEC) announced that it has dropped its two-year probe into Ondo Finance without charges. This ruling was a significant milestone, clearing the path for tokenized securities in the US.

Ondo’s New Bridge Structure

The bridge will enable users to transfer Ondo’s tokenized stocks and ETFs from one network to another without changing the value of the assets. Each asset keeps a 1:1 match across chains. From day one, over 100 tokenized stocks and ETFs will be available for trading, making it the largest bridge of its kind for tokenized securities. 

The new bridge also utilises a single shared system, rather than separate bridges for each asset. This setup allows all Ondo assets to move uniformly across chains, eliminating the need for different bridge contracts. It also handles hundreds of assets on various networks with minimal added complexity. 

Any protocol, wallet, or app that already works with LayerZero can easily add Ondo tokenized stocks and ETFs. Currently, over 2,600 apps are already connected to LayerZero across Ethereum and BNB Chain. Meanwhile, Stargate is one of the first platforms to integrate Ondo assets, making it easier for Ondo tokenized stocks and ETFs to be used across DeFi. 

Ondo Global Markets Expands as Ondo and LayerZero Introduce New Bridge

Since launching on Ethereum in September, Ondo Global Markets has grown into one of the world’s largest platforms for tokenized stocks and ETFs. It has exceeded  $350 million in total value locked and over $2 billion in total trading volume.

Moreover, Ondo Global Markets recently expanded to BNB Chain. This move provides access to BNB Chain’s 3.4 million daily active users and its large DeFi space, bringing on-chain stocks and ETFs to more users.

Ian De Bode, President of Ondo Finance, stated that the new bridge supports fast growth across multiple chains. He added that wallets and apps in the LayerZero system can add Ondo assets right away, helping build more cross-chain use cases for tokenized stocks. 

LayerZero Labs co-founder and Chief Executive Officer (CEO) Bryan Pellegrino also spoke on Ondo’s latest innovation. According to the CEO, tokenized assets have significantly improved the functionality of financial products. He explained that digital stocks and ETFs are easier to track, program, and transfer as quickly as the internet allows. 

The CEO stated:

“As the world shifts toward digitized stocks, ETFs, and other financial instruments, users will expect these assets to function like stablecoins, becoming instant, portable, and available everywhere. LayerZero is building the foundation for that future.”

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