Ondo has scrapped its plans for a tokenized asset blockchain. The company is now building a private, high-speed trading network that will initially support its recently-launched perpetual futures platform, with plans to eventually handle trading across a range of onchain financial assets.
The new network
Instead of a public or permissioned blockchain for tokenized real-world assets, Ondo is developing a dedicated trading infrastructure. The network is designed for speed and privacy, aimed at institutional-grade trading. It's already live for the firm's perpetual futures product, which went live this month.
Perpetual futures first
The perpetual futures platform is the first use case for the new network. Ondo is positioning the infrastructure as a backbone for onchain financial markets, but for now the focus is on derivatives. The company hasn't disclosed a timeline for expanding to other asset types.
What this means for the tokenization push
Ondo's pivot is a notable shift for a firm that was previously associated with the tokenized asset trend. The decision to abandon a dedicated blockchain for that purpose suggests the company sees more near-term opportunity in high-speed trading infrastructure than in the tokenization of traditional assets. The move also puts Ondo in more direct competition with existing derivatives exchanges and DeFi protocols.
The company has not commented on why it changed course, and it's unclear whether the original blockchain project will be repurposed or shelved entirely.
