What is Ondo (ONDO)?

Ondo is a financial platform focused on bringing real-world assets (RWAs) such as U.S. treasuries onto the blockchain. Its purpose is to make financial products that were once only accessible to large institutions available to a broader base of investors.

The platform has two main areas of focus:

• Asset management – This side develops and oversees tokenized products like USDY (U.S. Dollar Yield Token) and OUSG (Ondo Short-Term U.S. Treasuries).
• Technology – This division builds and operates decentralized protocols, enabling services like lending and borrowing with both permissioned and open assets.

With this dual setup, Ondo supports investors who want exposure to lower-risk RWAs while also giving developers the tools to integrate tokenized assets into their applications.

How Ondo Works?

Ondo takes traditional assets such as U.S. treasuries and creates tokenized versions that can live on-chain. Instead of relying on banks or brokers, investors deposit stablecoins like USDC and receive tokenized products in return. These tokens reflect their share of the underlying portfolio and generate yield as the assets earn returns.

USDY (U.S. Dollar Yield Token)

USDY is backed by short-term U.S. treasuries and bank deposits. It works much like a stablecoin but includes yield from the underlying assets. As of August 2025, it is available only to non-U.S. users and institutions. After a mandatory holding period, tokens become transferable on-chain.

There are two versions: the accumulating USDY, where the token price increases as yield builds, and the rebasing rUSDY, where the price stays fixed at $1 and additional tokens are issued to represent the yield.

OUSG (Ondo Short-Term U.S. Treasuries)

OUSG gives institutions tokenized access to short-term U.S. treasuries and government-backed securities. Like USDY, it is offered in both accumulating and rebasing formats. The portfolios behind OUSG are managed by leading firms such as BlackRock and Fidelity.

Investment Process

Investing in USDY follows a structured process:

1. Onboarding – Users complete KYC verification, provide a wallet address, and sign required documents to confirm eligibility and compliance.
2. Depositing funds – After approval, investors can deposit USDC at any time, with larger sums (over $100,000) accepted via USD bank wires. Interest accrues once funds are processed, typically within two to three business days.
3. Temporary certificate – Each purchase is grouped into a cohort, which sets the issuance date. While waiting, investors receive a Temporary Global Certificate as proof of investment.
4. Token minting – After 40 to 50 days, USDY tokens are minted and sent to the investor’s wallet, where they can be held, transferred, or traded in eligible markets.
5. Redemption – To redeem, USDY is converted back into USD via bank wire, but only to non-U.S. accounts.

By combining blockchain with established custodians and asset managers, Ondo turns a traditionally slow, complex process into tokenized assets that can be used in DeFi much like any cryptocurrency.

Ecosystem

Ondo Global Markets

In late 2025, Ondo plans to introduce Ondo Global Markets, a platform designed to move traditional investments such as stocks and bonds onto the blockchain through tokenization. The first phase is aimed at non-U.S. investors, giving them access to tokenized shares of major companies and ETFs managed by firms like BlackRock and Fidelity.

Ondo Chain

Alongside this, Ondo is building Ondo Chain, a Layer 1 blockchain created to support institutional-grade finance on-chain. It enables tokenized assets to be borrowed, lent, staked, or used as collateral in much the same way cryptocurrencies are today. The chain also supports the distribution of stablecoins backed by securities, automated portfolio strategies, and interoperability with both public and private blockchains.

Ondo Global Markets and Ondo Chain work together: the first focuses on tokenizing traditional assets, while the second provides the infrastructure for those assets to function securely at scale. Validators on the network are trusted institutions, with safeguards such as proof of reserves and a decentralized verifier network ensuring transparency. Validators can also stake real-world assets to strengthen the network and earn yield in the process.

Flux Finance

Flux Finance is a decentralized lending protocol created by Ondo. It operates independently, with its own application and community governance. The protocol is built on Compound V2, an early DeFi lending platform that introduced the peer-to-pool model, where lenders provide liquidity into pools and borrowers draw loans against collateral.

Flux extends this model by supporting both open-access tokens, such as USDC, and permissioned tokens like OUSG. This gives lenders the ability to earn interest on stablecoins, while borrowers can tap into liquidity backed by regulated, high-quality assets. Governance is handled by the Ondo DAO, allowing the community to guide the protocol while aligning it with Ondo’s broader mission of bringing institutional finance on-chain.

What is the ONDO Token?

The ONDO token is the governance and utility asset for the Ondo ecosystem. It serves multiple purposes across Ondo protocols:

• Governance – Holders can pause markets, update oracle sources, manage treasury funds, and decide on ONDO emissions that support ecosystem growth.
• Delegated voting – Voting power can be delegated to other participants, encouraging wider involvement in governance.
• Protocol management – ONDO holders participate in decisions around Flux Finance and other Ondo protocols, including listing assets, adjusting interest rate models, and managing reserves.

The token is actively used within the Ondo DAO to steer Flux Finance, oversee treasury operations, and shape the expansion of products like USDY. The Ondo Foundation supports these efforts by connecting the DAO with external partners and ensuring the ecosystem stays aligned with its broader goals.

The ONDO token is listed on many platforms, including BitMart, Bitstamp, BingX and Bithumb. If you’re looking to list your token on similar platforms, understanding the token listing process and crypto exchange listing fees is essential.

Conclusion

Ondo Finance is working to bring real-world assets into crypto through practical, regulated products. With tokenized offerings such as USDY and OUSG, investors can access yield-generating instruments directly on-chain. At the same time, platforms like Ondo Global Markets and Ondo Chain are being built to provide the infrastructure needed for real-world assets to move and operate at scale alongside digital currencies.

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