The token of decentralized finance asset manager Ondo Finance (ONDO) rallied nearly 10% on Thursday, continuing a 21% weekly surge. The move comes as optimism grows around tokenized financial products, with renewed headlines about BlackRock’s blockchain ETF plans and Ondo’s own launch of tokenized equities.
BlackRock’s blockchain strategy fuels sentiment
Bloomberg reported Wednesday that BlackRock, the world’s largest asset manager, is preparing to bring ETFs onto public blockchains. Combined with expectations of a potential Federal Reserve rate cut, crypto markets broadly climbed through the week.
Ondo’s token, trading at $1.10 according to CoinGecko data, outpaced the broader market. Its rise reflects the increasing overlap between DeFi protocols and traditional finance institutions.
Ondo launches tokenized U.S. equities
Last week, Ondo released tokenized versions of more than 100 U.S.-listed equities and ETFs on Ethereum through its Global Markets platform.
Investment analyst Lai Yuen of Fischer8 Capital said the price rally is tied to “excitement around tokenized stocks.” He pointed to early adoption as a sign of traction: advisors such as WisdomTree have helped the platform secure $160 million in total value locked (TVL) within nine days of launch.
According to DefiLlama data, Ondo’s overall TVL has nearly tripled this year, climbing from $611 million at the start of 2025 to $1.57 billion today.
BlackRock partnership strengthens institutional ties
Ondo Finance’s links with BlackRock extend beyond market sentiment. In March 2024, BlackRock partnered with Ondo via tokenization firm Securitize to launch BUIDL, a tokenized U.S. Treasury fund.
Ondo became the largest holder of BUIDL, integrating 223 million tokens (valued at $223 million) into its OUSG product. This lowered entry barriers by reducing the minimum investment threshold from BUIDL’s $5 million to $100,000, opening participation to a broader base of institutions and funds.
Liquidity was further enhanced when Circle facilitated real-time USDC redemption with a $100 million reserve, improving usability across DeFi and institutional markets. This helped solidify Ondo’s positioning as one of the few DeFi protocols with direct structural ties to global asset managers.
Analyst outlook and risks
Yuen of Fischer8 Capital argued that if Ondo captures even 10% of tokenized equity markets, the fee income potential would be “substantial for ONDO token holders.” He added that Ondo’s advisory framework offers a regulatory advantage compared to pure DeFi-native competitors.
Still, several risks remain:
- Regulatory scrutiny: Tokenized securities face oversight in the U.S. and abroad. A potential challenge from regulators could limit growth or require structural changes.
- Scaling and costs: Reliance on Ethereum means Ondo is subject to high gas fees and congestion, which could affect Global Markets product adoption.
- Liquidity depth: Although TVL growth has been rapid, secondary market liquidity for tokenized stocks is still fragile compared to traditional exchanges.
Ondo fundamentals
- Price: $1.10 (+21% weekly, CoinGecko)
- Market cap: $3.45 billion (#49 globally)
- 24h volume: $496 million (+102% vs. prior day)
- Exchanges: Binance, Coinbase, Bybit
- All-time high: $2.14
- All-time low: $0.08217 (still +1,200% above)
Ondo’s trading volume increase suggests growing speculative and institutional interest.
Positioning in DeFi and tokenization
Ondo operates through two divisions, an asset management arm, which creates tokenized financial products, and a technology arm, which builds decentralized infrastructure. Backers include BlackRock, Founders Fund, Coinbase, and Pantera, validating its credibility among traditional and crypto-native capital providers.
Its flagship products are USDY, a tokenized note backed by U.S. Treasuries and bank deposits, and OUSG, offering liquid on-chain exposure to Treasuries.
Outlook
With digital assets entering mainstream conversations, Ondo sits at the convergence of institutional finance and DeFi infrastructure. The ONDO price surge reflects both enthusiasm around tokenization and recognition of its unique partnerships, particularly with BlackRock.
Yet the project’s future hinges not just on growth in TVL but on successfully navigating regulatory scrutiny, ensuring liquidity depth, and proving sustainable demand for tokenized equities.
Anastasiia G
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