Ondo (ONDO)

Real-World Asset Tokenization

Ondo creates digital tokens that represent real-world assets like U.S. Treasury bonds and money market funds. This makes it easier for investors to access and trade these assets on the blockchain.

Investment Products

Ondo offers tokenized products such as OUSG (U.S. Treasury exposure), OMMF (money market fund exposure), and USDY (a yield-bearing stablecoin alternative). These products help investors earn returns while managing liquidity.

DeFi Lending and Collateral

USDY can be used as collateral in decentralized finance (DeFi) platforms, enabling borrowing and lending activities.

Institutional and Retail Use

Ondo supports both individual investors and institutions by providing access to tokenized securities and structured financial products, bridging traditional finance and crypto.

Governance and Staking

The ONDO token is used for governance decisions within the Ondo ecosystem and can be staked to earn rewards, helping secure the network and support its growth.

Pros

• Ondo offers innovative DeFi products focused on structured yield generation and real-world asset (RWA) tokenization.
• It provides access to diverse investment opportunities, helping users diversify their crypto portfolios.
• The platform has strong partnerships with institutional players and emphasizes regulatory compliance.
• Ondo enables predictable, dollar-denominated returns by tokenizing high-quality collateral.
• It supports integration with stablecoins and other crypto assets, making it flexible for users.
• The ONDO token has growing market interest and liquidity on major exchanges like Binance.

Cons

• The platform and token can be complex for beginners due to sophisticated financial products.
• ONDO prices can be volatile, reflecting the broader crypto market fluctuations.
• Regulatory changes may impact the platform’s operations and token performance.
• Some concerns exist about token distribution, such as a large allocation to core contributors.
• As a relatively young project, Ondo faces challenges in scaling and execution risks.

Overall, Ondo blends traditional finance with DeFi, offering unique investment options but with complexity and market volatility to consider.

Founders

Ondo was founded in 2021 by Nathan Allman and Pinku Surana. Both founders have experience from working at Goldman Sachs, with Allman focusing on digital assets and Surana leading blockchain development efforts.

Investors in Ondo

Ondo has raised about $23.9 million from a variety of investors. Some notable investors include:

• 1kx
• Arete Capital (London)
• Coalition Operators
• Coinbase Ventures
• CoinList
• Pantera Capital (led seed funding)
• Founders Fund
• Tiger Global
• Goldman Sachs (via founders' background and connections)

These investors come from venture capital firms, crypto-focused funds, and traditional finance backgrounds, supporting Ondo's mission to bridge DeFi and traditional finance.

Halal Status of Ondo

• Halal or Not: No, Ondo is generally considered uncomfortable or not fully halal.
• Reason: Ondo Finance deals with tokenized interest-bearing instruments like U.S. Treasury bills, which involve elements of interest (riba) that are not compliant with Islamic finance principles.
• Utility: The ONDO token is mainly used for governance in the protocol, which focuses on traditional finance assets that may conflict with Shariah rules.