Outside Source
Ondo Finance, a tokenized real-world asset platform, has integrated LayerZero’s interoperability protocol for multi-chain transfers of its tokenized assets.
According to an announcement, Ondo (ONDO) will tap into LayerZero (ZRO)’s technology to expand the reach of its U.S. Dollar Yield (USDY) stablecoin, a yield-bearing tokenized U.S. Treasuries asset with a market cap exceeding $452 million. USDY is currently the third-largest tokenized U.S. Treasuries product.
“Institutional-grade assets demand secure and reliable interoperability to fully unlock the potential of blockchain technology,” said Nathan Allman, chief executive officer of Ondo Finance. “Our partnership with LayerZero ensures seamless cross-chain transactions, providing the robust infrastructure necessary for institutions to confidently make their tokenized assets accessible omnichain across interconnected blockchains.”
Ondo will utilize LayerZero’s Omnichain Fungible Token Standard (OFT), which extends the functionality of ERC-20 tokens for broader DeFi use. The integration ensures institutional-grade security with verification supported by platforms like Polyhedra, Axelar, and LayerZero Labs.
Users can now access yield-bearing U.S. Treasuries without minting new tokens on additional chains. Ondo’s USDY is fully interoperable across Ethereum, Arbitrum, and Mantle networks through this integration.
Ondo and LayerZero will expand the collaboration beyond the three initially-supported networks. Data from rwa.xyz shows that the tokenized real-world asset is also available on Solana, Sui and Aptos.
Per rwa.xyz, Ondo’s RWA products have grown to 11 to bring the platform’s total value in yield-backed tokenized U.S. Treasuries to over $600 million. This positions Ondo ahead of competitors like BlackRock tokenization partner Securitize, Hashnote, and Franklin Templeton Benji Investments.
This article first appeared at crypto.news
