Significant development
It is for very good reason that the surge in crypto uptake by traditional financial institutions is dominating the headlines.
After years of scepticism and naysaying around digital assets, the breakthrough blockchain-based networks have sought for so long has finally happened.
It’s all moving quickly now, with regulatory bodies from the US to Europe and beyond granting operating licences every other week.
With so much buzz around institutional adoption and regulatory approvals, it is very easy to lose sight of other developments that have the potential to further transform the world’s financial markets.
One such development is being driven by Ondo Finance, a financial platform focused on tokenising real-world assets.
Democratising marquee assets
In a move that some analysts are already considering a potential global game-changer, Ondo Finance has gone live on high-performance blockchain network Solana with more than 200 tokenised traditional financial assets.
These assets include commodities, exchange-traded funds (ETFs), US stocks and bonds.
What differentiates this offering from others in the market is that Ondo Finance is deliberately tying Wall Street-grade investments to a network that has made its name on low costs and speed.
This essentially means that marquee assets are no longer only the preserve of wealthy investors – they can now be accessed by Solana users who don’t have nearly as much to spend.
In a recent post on X, Ondo Finance put that number of users in the millions.
Benefits to users
In the post, it said tokens would track leveraged and inverse ETFs, market indexes and sector funds, gold, silver, oil and strategic metals, as well as treasury and corporate bonds.
Ondo Finance president Ian De Bode says the company had noted early signs of demand for onchain equites on Solana but the current versions of tokenised stocks limited liquidity depth and asset selection.
Ondo’s tokenised stocks will change that by bringing liquidity inherited from traditional exchange venues and a broad catalogue of stocks and ETFs onchain.
This development could be massive for Solana price USD. In the medium to long term since the advantages for Solana users are numerous.
The ability to trade traditional assets 24 hours a day and not only during stock market hours will be a massive drawcard.
An even bigger one is that trades can be completed in seconds due to Solana’s speed and at a fraction of the price traditional brokers would charge.
Another significant benefit is that these tokenised traditional assets can be used for lending and as collateral.
This is simply unheard of with traditional brokerage accounts.
While it is still early days, forecasters suggest that if this model comes off, trillions of dollars in traditional assets could be linked to global markets via the Solana platform.
A digital capital future
Solana Foundation head of institutional growth notes that Solana is specifically designed to support high-performance financial applications at a global scale.
“As Solana powers internet capital markets, real-world assets are an important part of that future.”
And Solana, it appears, could well be at the epicentre of that future.
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