Revolution in the financial sector: Ondo and Chainlink strengthen blockchain innovation!

Revolution in the financial sector: Ondo and Chainlink strengthen blockchain innovation!

Ondo Finance and Chainlink have announced a significant partnership aimed at improving the infrastructure for tokenized securities and integrating financial institutions onto the blockchain more effectively. This collaboration represents a significant step in real-world asset tokenization (RWA) and could have the potential to revolutionize the way traditional financial instruments operate on the blockchain. Loud FXStreet Ondo uses Chainlink's oracle services to seamlessly implement this process.

Ondo Finance has already established an extensive institutional ecosystem for the tokenization of RWAs, which includes over 100 well-known institutions. In addition, Chainlink will serve as the official oracle provider for Ondo's tokenized securities, enabling the development of new DeFi use cases such as vaults, structured products and lending protocols. Chainlink provides a reliable data infrastructure that is essential to the success of Ondo's tokenized stocks and exchange traded funds (ETFs).

Opportunities and challenges of the partnership

Sergey Nazarov, co-founder of Chainlink, emphasizes the transformative power of this partnership. By securing the tokenized stocks with Chainlink, he sees a redefinition of traditional financial instruments on the blockchain. Despite the positive developments, Chainlink currently stands at around $17.00 and is affected by a general downtrend in the cryptocurrency market. This market development is evidenced by various technical indicators.

Chainlink is below relevant moving averages such as the 200-day EMA at $18.88, the 50-day EMA at $19.72, and the 100-day EMA at $19.83. The Relative Strength Index (RSI) shows increasing bearish momentum with a value of 41. The same goes for ONDO, which is currently trading at around $0.68 and is also placed below the moving averages. The 50-day EMA is at $0.82, the 100-day EMA is at $0.87 and the 200-day EMA is at $0.89.

Market analysis and outlook

The RSI for ONDO is at 36, which also indicates bearish momentum. Should the MACD generate a sell signal, the price of ONDO could fall further with the support level at $0.62. Still, there are positives: Investors might consider getting in on the dip, especially given the partnership with Chainlink, which could potentially bring a turnaround in sight.

The key targets for ONDO are the 50-day EMA at $0.82 and the 200-day EMA at $0.89. By implementing this partnership, Ondo and Chainlink have created the potential to fundamentally change the landscape of financial instruments and open up new opportunities for investors.