Finance company Ondo and Alpaca join forces to create digital tokens for trading U.S. equities and exchange-traded funds (ETFs)
Ondo Finance, a pioneering fintech company, has launched Ondo Global Markets, a platform that allows for the tokenization of US stocks and exchange-traded funds (ETFs). This groundbreaking development is now available in the Asia-Pacific, African, and Latin American markets.
With over 100 assets live on the platform, Ondo Global Markets aims to scale to over 1,000 tokenized US stocks and ETFs by the end of the year. The platform provides deep liquidity, similar to traditional exchange liquidity for on-chain investors.
The collaboration between Ondo Finance and Alpaca, a self-clearing broker-dealer and brokerage infrastructure API based in the United States, powers Ondo Global Markets. Yoshi Yokokawa, CEO and Co-Founder of Alpaca, believes that the future of finance lies in bridging traditional and decentralized markets.
Ondo tokenized stocks behave like stablecoins for ease of use and automation, enabling them to be used in decentralized finance (DeFi) applications. These tokens are fully backed by US stocks and ETFs, held in custody by US broker-dealers and independent security agents.
Ian De Bode, Chief Strategy Officer at Ondo Finance, states that global investors have historically faced barriers to accessing the US securities markets. With Ondo Global Markets, these barriers are broken down, offering global investors unprecedented access to US securities.
Currently, Ondo Global Markets is available on Ethereum, with Solana and BNB Chain launching soon. This expansion into multiple blockchain networks will further increase accessibility and liquidity for global investors.
The McKinsey report predicts that the tokenized market capitalization could reach around $2 trillion by 2030. Alpaca, with its infrastructure and collaboration with Ondo Finance, is dedicated to enabling this transformation globally.
The collaboration between Ondo Finance and Alpaca highlights the ongoing evolution of the financial landscape, as traditional and decentralized markets continue to converge. This development is a significant step towards a more inclusive and accessible global financial system.
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