Ondo Finance is expanding its market with the help of Polygon Labs to promote acceptance of tokenized financial products in Defi

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Ondo Finance, ein Vermögensverwalter mit Sitz in Ethereum, erweitert seinen Markt durch die Zusammenarbeit mit Polygon Labs, um die Akzeptanz von tokenisierten Finanzprodukten in der dezentralen Finanzwelt (DeFi) voranzutreiben. Durch die Expansion zu Polygon plant Ondo Finance seinen ersten Schritt über das Ethereum-Mainnet hinaus zu machen, da die Transaktionskosten aufgrund der Kapazitätsgrenzen des Ethereum-Netzwerks gestiegen sind. Durch die Zusammenarbeit mit Polygon sollen diese Kosten gesenkt werden. Laut Justin Schmidt, dem Präsidenten und Chief Operating Officer von Ondo Finance, wird die Vereinbarung mit Polygon den Zugang zu institutionellen Vermögenswerten in der Blockchain erleichtern. Schmidt betonte, dass dieser Schritt zu einem richtigen …
Ondo Finance, a wealth manager based in Ethereum, is expanding his market through the cooperation with Polygon Labs to promote the acceptance of tokenized financial products in the decentralized financial world (Defi). Due to the expansion to polygon, Ondo Finance plans to take its first step beyond the Ethereum-Minnet, since the transaction costs have increased due to the capacity limits of the Ethereum network. Through cooperation with polygon, these costs are to be reduced. According to Justin Schmidt, the President and Chief Operating Officer from Ondo Finance, the agreement with polygon will facilitate access to institutional assets in the blockchain. Schmidt emphasized that this step to a real ... (Symbolbild/KNAT)

ondo Finance, a asset manager based in Ethereum, is expanding his market through the cooperation with Polygon Labs to promote the acceptance of tokenized financial products in the decentralized financial world (Defi).

Due to the expansion to polygon plans to take its first step beyond the Ethereum-Minnet, since the transaction costs have increased due to the capacity limits of the Ethereum network. Through cooperation with polygon, these costs are to be reduced.

According to Justin Schmidt, the President and Chief Operating Officer from Ondo Finance, the agreement with polygon will facilitate access to institutional assets in the blockchain. Schmidt emphasized that this step takes place at a correct time, since higher returns are possible in the defi ecosystem than with other assets such as stable coins.

The Federal Reserve and other central banks have increased interest rates in recent years to contain inflation. This also increases the returns for government bonds. Some companies like Ondo Finance took this opportunity and tok government bonds to benefit from the higher returns.

A tokenized asset is a blockchain-based representation of ownership of an asset. The underlying properties and earnings are preserved. In contrast, a stable coin is a digital token, the value of which is bound to a Fiat currency or a raw material to keep its volatility under control.

According to Dune Analytics, Ondo Finance currently has the largest market share of tokenized securities with a market capitalization of almost $ 134 million. Other companies such as Franklin Templeton and JP Morgan also have positions in this market.

The step of Ondo Finance to expand its range of tokenized financial products takes place at a time when established financial companies are looking for investment opportunities in cryptocurrencies. Companies such as Blackrock, Fidelity, Valkyrie and Investco have submitted applications for Bitcoin funds.

The entry of traditional financial companies in the crypto world and increasing tokenization could be part of a trend in finance. Experts such as Colin Butler, global director of institutional capital at Polygon Labs, expect a tidal wave of companies that introduce tokenization in the near future.

It remains to be seen how the market for tokenized financial products will develop and what effects this will have on the traditional financial system. However, companies such as Ondo Finance rely on the opportunities that are offered by the tokenization of assets in order to remain competitive in this rapidly changing market.