Ondo Finance has unveiled the Ondo Network — an execution layer built to deliver centralized-exchange speeds while preserving self-custody, privacy and blockchain settlement.
What they launched
- Announced July 27, the Ondo Network replaces Ondo’s previously planned Layer 1 “Ondo Chain.” CEO Ian De Bode called the change an “evolution” of that vision and said the company will not run both systems in parallel.
- The Network is designed for fast, private, non-custodial trading and broader financial primitives, not just a single-purpose exchange.
Why the pivot
- While building Ondo Perps and consulting prospective users, Ondo found execution speed — not settlement capacity — was the primary barrier to on-chain trading competing with centralized exchanges.
- Traditional blockchains combine execution, verification and settlement on a public ledger, which is transparent but can leak order flow and bottleneck high-frequency matching. Ondo split those roles.
How it works (technical overview)
- Execution happens inside trusted execution environments (secure hardware enclaves). These isolated environments run application code privately, keeping sensitive data such as open positions and order flow off the public record while enabling near-CEX matching speeds.
- A decentralized set of attestors controls which code the enclaves can run. The network uses a multiparty architecture so no single operator can approve unauthorized code, reconstruct signing keys, or unilaterally transfer user assets.
- Asset transfers currently settle on Ethereum; Ondo plans to extend settlement to other public blockchains over time. For now, the network’s settled state is retained inside enclaves, with plans to commit records to public chains as the design matures.
- Future decentralization steps include adding more attestors and independent watchers, bonded participation, and additional cryptographic proofs. The ONDO token is expected to power incentives and governance as those responsibilities are shifted on-chain.
Use cases and first application
- The system is general-purpose: developers can build spot markets, lending, structured products, settlement rails — and even non-financial apps that need fast, verifiable private execution.
- Ondo Perps is the Network’s first live application. Launched earlier in July for non-U.S. users, it offers perpetual futures tied to equities and commodities and accepts tokenized real-world assets as collateral, with up to 20x leverage on selected markets. The design showcases the Network’s promise: private, near-CEX execution with user custody and blockchain settlement.
Token and market reaction
- The ONDO token’s immediate role is unchanged: it remains Ondo’s governance and ecosystem token for real-world asset and market infrastructure.
- After the announcement ONDO traded near $0.40, up about 1.1% over 24 hours, with a market cap around $1.96 billion (CoinGecko).
Regulatory context
- The Network launch coincides with fresh U.S. regulatory permissions for Oasis Pro Markets, Ondo’s SEC-registered broker-dealer subsidiary. FINRA has authorized Oasis Pro for National Market System stocks, ETFs, mutual funds, index funds and IPO securities, covering activities such as retail OTC trades, private placements and underwritten primary offerings.
- The framework supports settlement via fiat or selected stablecoins and wallet-to-wallet transfers, potentially enabling eligible U.S. retail and institutional investors to access tokenized securities through existing brokers, advisers and retirement accounts.
- Important caveat: those authorizations provide regulated infrastructure but do not automatically make Ondo Perps or all existing Ondo products available to U.S. residents — individual offerings must meet separate eligibility and compliance requirements.
Why it matters
- Ondo’s approach targets one of crypto’s longstanding trade-offs: speed and privacy versus verifiability and custody. By separating private high-speed execution from on-chain settlement and bringing hardware-backed enclaves plus decentralized attestation into the mix, Ondo aims to bridge CEX performance with on-chain trust guarantees. The Network’s rollout, onboarding of additional attestors and future commitment of settled state to public chains will be the key milestones to watch.
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