Put US stocks and ETFs on the chain! Ondo founder Allman: Securities firms are competing for cooperation, BlackRock and Goldman Sachs will participate in governance verification

Nathan Allman, founder of tokenized product protocol Ondo Finance, stated in an interview on 5/4 that real-world asset (RWA) tokenization has become a major trend in the financial market. He revealed that traditional financial giants like BlackRock, Franklin, and Goldman Sachs have already entered the market, and even US stock brokers have expressed willingness to cooperate. He believes that all assets will move towards instant settlement and borderless circulation in the next 10 years, and is very optimistic about the future development of blockchain.

Ondo Turns US Bonds into Tokens? Nathan: Wants Stablecoins to Earn Interest

Allman stated that they initially chose "US Treasury Bonds" as the on-chain asset due to its high liquidity and stable interest rates. They designed two products:

• OSG: Only open to qualified investors

• USDY: Similar to stablecoins, but can earn interest, open for secondary market trading (requires KYC)

These products are called Yield Coins, mainly providing a more advanced stablecoin option compared to USDC and USDT.

Plans to Move ETFs and US Stocks on-chain, Breaking Global Market Restrictions

Ondo is currently promoting the "Global Markets" platform, allowing global users to buy US stock ETFs as they would on online brokers like Robinhood or Interactive Brokers, but all completed on-chain. Allman emphasized:

• No need for traditional brokerage accounts

• 24/7 settlement, no T+2 delay

• Easier cross-border trading, not restricted by holidays

(Ondo Finance Launches Tokenized Asset Trading Platform Ondo Global Markets, Reshaping Traditional Financial Market Landscape)

Building Ondo Chain, Institutions Require "Stability, Safety, and Regulability"

To attract institutional participation, they built Ondo Chain:

• Uses Cosmos technology with cross-chain governance capabilities

• Node validators must be vetted to prevent money laundering and front-running

• Supports minting and redeeming assets on multiple public chains (like Ethereum)

• In the future, asset management firms like BlackRock and Franklin will directly become node validators, participating in governance and validation.

Why Not Use Ethereum? Because It's Too Decentralized and Not Suitable for RWA

Regarding why they didn't continue using Ethereum, Allman directly stated:

"Real-world assets are not applications that prioritize decentralization."

RWA's needs are stability, regulatory compliance, and cooperation with financial institutions, not open governance.

He even said that while Ethereum still has TVL, its heat in RWA applications is gradually being replaced by other chains.

(Ondo Finance Launches Ondo Chain: A Full-Chain Network Designed for Tokenized Asset Trading)

Inspiration from DeFi Summer: One-Click Asset Movement, No Binding, Fully Composable

Allman recalls his experience during the 2020 DeFi Summer, believing that the "asset free liquidity" at that time represents the future of finance:

• All assets exist in the wallet, with a one-click platform conversion

• No lock-up period, no contract restrictions

• Complete "composability", freely assembling one's own financial strategy

This freedom should also be enjoyed by traditional assets such as stocks and bonds.

Will Regulations Be an Obstacle? Actually Much More Friendly Than Imagined

Allman states that although there are many controversies surrounding stablecoin interest distribution, if the product is designed correctly, such as being classified as a "security" rather than a "stablecoin", there is actually a reasonable regulatory framework. He believes that regulation is now much more friendly:

• SEC now encourages innovation, unlike the previous chairman Gensler

• Banks and brokers have completely changed their attitude, from "prohibiting cooperation" to "competing to cooperate"

• Stablecoin legislation is expected to be released in 4-6 months, opening the door to compliance

Can Retail Investors Become Hedge Funds? The Biggest Benefit of Tokenization is "Financial Democratization"

Allman emphasizes finally:

"The core of all this is to allow global users to enjoy high-end financial services at low costs."

For example:

• Prime brokerage services previously only available to hedge funds will now be accessible to everyone

• No need for $100,000 to buy US stocks or do asset allocation

• Breaking the monopoly of financial centers, allowing users in Asia and Africa to fairly participate in the US market

Allman is Optimistic About the Next 10 Years, with All Assets Globally Circulating and Instantly Settled

Allman is very optimistic about the future, believing that:

• Within 10 years, all assets will move towards instant clearing and global circulation

• Financial institutions will shift from opposing to embracing blockchain

• The service threshold gap between retail investors and institutions will gradually disappear