Ondo Finance Chooses Ethereum Payments Over Its Own Chain

Ondo Finance has abandoned its plans for a proprietary Layer 1 blockchain, opting instead for off-chain transaction execution while leaving payments on public blockchains like Ethereum (ETH). The Ondo network was officially announced on July 27 through its blog, modifying the original Ondo chain plans to introduce a high-speed, private execution network tailored for institutional trading. By separating transaction execution from payments, processes such as order matching, margin management, and liquidation occur within a Trusted Execution Environment (TEE), while asset transfers and final settlements are handled on public blockchains. Ondo Finance explained that while the consensus and transparency of public blockchains are beneficial for payments, they impose burdens on transaction execution speed and privacy. The Ondo network has already been applied to Ondo Perps, a platform that supports perpetual futures trading backed by tokenized real assets. Independent validators verify that code and key management comply with approved conditions, and Ondo Finance divides key shards to ensure that no single operator holds the entire key. This structure diverges from the Ondo chain proposed last year, separating the nature of payments and executions in a manner similar to existing financial exchanges. However, the Ondo network is not a fully decentralized trading infrastructure, as current code execution occurs within a single high-performance enclave. Future developments include expanding validator participation and submitting on-chain states.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.