Collaboration between World Liberty Financial and Ondo Finance

The Trump-supported DeFi protocol World Liberty Financial and tokenized asset issuer Ondo Finance announced a partnership to enhance the adoption of tokenized RWAs and integrate traditional finance on-chain, as detailed in a blog post on Tuesday.

Integration of Tokenized Assets

World Liberty Financial aims to integrate Ondo’s tokenized assets, including Short-Term U.S. Government Treasuries (OUSG) and U.S. Dollar Yield (USDY) tokens, into the WLFI network as treasury reserve assets.

Donald Trump Jr., Web3 Ambassador at World Liberty Financial, emphasized that this collaboration is a significant advancement in merging traditional finance with blockchain technology, offering secure yields and access to traditional assets.

Recent Developments

Last week saw intensified collaboration, with Ondo Finance launching Ondo Global Markets on February 5 to provide on-chain exposure to U.S. stocks, bonds, and ETFs. The following day, Ondo released Ondo Chain, a new Layer 1 blockchain aimed at enhancing institutional-grade market creation.

Ondo Finance’s Total Value Locked (TVL) rose to $650 million after the inaugural Ondo Summit, showcasing significant growth from $192 million a year earlier, contributing to a total of $7.68 billion TVL across the top 15 RWA protocols, according to The Block Research.

Future Plans

World Liberty Financial plans to incorporate USDY, OUSG, and tokenized securities from Ondo’s upcoming Global Markets into its future WLFI platform, allowing for seamless borrowing, lending, and trading. However, it’s uncertain if U.S. users can access these assets since some Ondo products are unavailable in the U.S.

On the day Ondo unveiled its blockchain, World Liberty Financial purchased approximately $470,000 worth of Ondo’s native token.

Nathan Allman, CEO of Ondo Finance, expressed enthusiasm about the collaboration, highlighting the growing demand for on-chain solutions that offer stability, liquidity, and utility. Chase Herro, co-founder of World Liberty Financial, mentioned plans to create a “strategic reserve” with tokens, currently holding around $35 million in various tokens, although this marks a significant decline from a once larger treasury following recent transactions.