Decentralized Finance (DeFi) initiative, Ondo, seeks to rival Robinhood by delving into tokenized equities
In a significant move, Ondo Finance, a leading fintech company, has announced the acquisition of Oasis Pro, an SEC-regulated digital assets infrastructure provider. This strategic move aims to bolster Ondo's presence in the rapidly growing market for tokenized real-world assets (RWAs).
According to Ondo's CEO, Nathan Allman, the acquisition will help realise their vision of building a robust and accessible tokenized financial system. Ondo's Global Markets platform already allows non-U.S. investors to invest in tokenized stocks, bonds, and exchange-traded funds. With the addition of Oasis Pro's infrastructure, U.S. investors will now have access to these offerings as well.
The tokenized RWA market is currently valued at around $24 billion, having grown by approximately 380% over the past three years. Within this, tokenized treasuries have reached about $5.6 billion, with rapid growth noted since 2024. Tokenized real estate, a significant subset of RWAs, is currently valued in the hundreds of millions on-chain but is poised for massive expansion.
Growth projections for the RWA tokenization market are promising. By 2030, the total market is projected to grow substantially, with estimates varying widely among experts. McKinsey predicts a $2 trillion market by 2030, while BCG estimates $16 trillion by that year. The real estate tokenization market alone is expected to exceed $1.4 trillion annually by 2030, driven by blockchain adoption and fractional ownership models lowering entry barriers. A longer-term projection suggests that by 2034, the global RWA tokenization market could reach as high as $30 trillion.
Key drivers fueling this growth include institutional adoption, regulatory clarity in regions like Singapore and Switzerland, landmark fractionalization deals, and the potential for enhanced liquidity and access to traditionally illiquid assets.
Ondo Finance believes the transparency of its offering separates it from the competition in the market for tokenized stocks. The company is throwing itself into a crowded ring of fintech heavyweights, including Robinhood, that aim to capitalise on the recent on-chain equities market boom.
The acquisition deepens Ondo's exposure to tokenized real-world assets. Robinhood and Kraken have made moves to open up access to tokenized U.S. stocks to E.U. investors recently. The xStock tokenized shares on Solana are available globally, including to U.S. investors.
Ondo Finance will inherit Oasis Pro's broker-dealer, alternative trading system, and transfer agent licenses from U.S. federal regulators. The company has also secured a deal with crypto venture-capital firm Pantera to earmark $250 million for funding real-world asset tokenization projects.
As a member of FINRA's Crypto Working Group, Oasis Pro has helped shape the U.S.' regulatory framework for tokenized assets. Solana-based decentralized exchange Jupiter and DeFi oracle network Chainlink offer support for tokenized shares of Apple, Nvidia, and other major stocks via the xStock platform.
In conclusion, the tokenized real-world asset market is still in its early stages but is on track for exponential growth, potentially becoming a multi-trillion dollar sector by 2030. Ondo Finance's strategic acquisition of Oasis Pro marks a significant step in the company's mission to build a robust and accessible tokenized financial system.
- The acquisition of Oasis Pro by Ondo Finance will enable U.S. investors to access tokenized stocks, bonds, and exchange-traded funds through Ondo's Global Markets platform.
- The tokenized real-world asset market, currently valued at around $24 billion, is projected to grow substantially by 2030, with estimates ranging from $2 trillion (McKinsey) to $16 trillion (BCG).
- The real estate tokenization market alone is expected to exceed $1.4 trillion annually by 2030, driven by blockchain adoption and fractional ownership models lowering entry barriers.
- Ondo Finance's transparency in its offering for tokenized stocks sets it apart from competitors in the market, including Robinhood and other fintech heavyweights.
- Ondo Finance has secured a deal with crypto venture-capital firm Pantera to fund real-world asset tokenization projects to the tune of $250 million.
- As a member of FINRA's Crypto Working Group, Oasis Pro has played a significant role in shaping the U.S.' regulatory framework for tokenized assets, with support from platforms like Jupiter and Chainlink.
- With the addition of Oasis Pro's infrastructure, Ondo Finance aims to build a robust and accessible tokenized financial system, positioning itself for growth in the rapidly expanding digital asset market.
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