Ondo Global Markets FAQ

Ondo Global Markets* is a platform designed to bring publicly traded securities onchain through tokenization. It will enable global non-US investors to access liquid public securities¹ – securities like US Treasuries, public equities, bonds, and ETFs – with features like 24/7 instant settlement, seamless integration with decentralized finance (DeFi), and robust compliance tools.

Ondo Global Markets aims to do for securities what stablecoins have done for the US dollar. Just as stablecoins transformed access to US dollars by addressing challenges like high fees, limited availability, and transfer frictions, Ondo GM applies these same principles to securities. The platform will also enable these tokens to be freely transferable for users outside the US¹, allowing for broad usability and accessibility similar to stablecoins.

At launch, we expect that Global Markets will offer tokenized exposure to some of the most widely traded stocks such as Apple and Tesla, and a variety of popular ETFs from leading asset managers, such as Fidelity and BlackRock. The initial focus will be on liquid publicly traded US stocks, bonds, and ETFs. Over time, the platform aims to expand to other asset classes, including international equities, corporate bonds, and other publicly traded instruments.

Ondo Global Markets will serve a diverse range of participants outside of the US, including investors, asset managers, broker-dealers, and developers¹. By lowering barriers to entry and offering both an easy to use web app and flexible APIs, the platform supports both direct users and third-party services building on Ondo GM infrastructure.

Unlike traditional brokerage services, Ondo Global Markets will leverage blockchain technology to provide:

• Instant settlement for tokenized assets.
• Seamless integration with DeFi protocols for added utility (e.g. use of tokens as collateral for loans).
• Lower transaction costs through automation and disintermediation.
• Global accessibility, enabling users outside the US to access tokens anywhere, anytime.¹

Ondo Global Markets will democratize access to high-quality US securities. Tokens will be able to be freely transferable in secondary markets outside the US¹, making them simple to trade and usable in DeFi. The tokens are designed for instant minting and redemption with the same liquidity as the underlying asset, addressing one of the historical challenges of bringing assets onchain. And investors will be able to borrow against their token holdings at rates/terms available in traditional markets, which often are better than those historically found onchain.

By tokenizing securities, Ondo Global Markets will reduce the high operational costs associated with starting and running a brokerage. For example, previously Robinhood’s CEO noted that offering equities costs 10x more than offering crypto products. With Ondo Global Markets, traditional brokerages will be able to leverage blockchain to enhance functionality and user reach while dramatically lowering costs.

DeFi protocols and wallets gain access to high-quality RWAs, filling a gap for users who need assets beyond volatile, speculative tokens. Developers can pioneer use cases that connect traditional finance with DeFi, establishing themselves as leaders in financial innovation.

Global Markets tokens can be used as collateral for onchain loans, derivatives, and other financial arrangements that have the global accessibility, transparency, and composability that DeFi is known for. DeFi protocols operate 24/7/365, enabling investors to access these services whenever they want. Additionally, unlike in most of traditional finance, there is generally no “lock-in” with DeFi protocols: investors can shop for the best terms and move their assets between wallets or protocols with minimal friction. They can also use these tokens alongside crypto, enabling novel use cases such as margin that is cross-collateralized by crypto and securities.

At launch we expect that Global Markets will offer tokenized exposure to many of the most widely traded stocks such as Apple and Tesla, and a variety of popular bonds and ETFs from leading asset managers, such as Fidelity and BlackRock. Over time, we intend to provide such exposure to all securities trading on the NYSE and NASDAQ.

Over time, yes.

Over time, yes.

All Ondo Global Markets tokens will be natively issued on Ondo Chain. However, due to Ondo Chain’s built-in bridging capabilities and extensive connectivity to other chains, we expect Global Markets' assets to be available on every chain that Ondo Chain supports.

We expect that transfers and trades on the secondary market will be nearly free, with a small minimum required investment.

For regulatory reasons, Ondo Global Markets tokens will be offered and sold only to non-US persons outside the United States; the platform itself enables technological implementation of these restrictions.

Primary purchasers of Ondo GM tokens will be required to complete customer due diligence in accordance with applicable law and to ensure, among other things, that the purchasers are non-US persons outside of the US and are not subject to applicable sanctions.

By ‘instant’, we mean that receipt of cash and the actual token minting happen in a single atomic transaction on the blockchain. Once a buy order is received on the platform, Global Markets will initiate a corresponding buy order with a partner broker-dealer. Once the broker-dealer confirms the buy order, the platform will initiate an atomic transaction wherein the investor’s stablecoin or yieldcoin is taken from their wallet and a new Ondo GM token corresponding to the underlying security will be issued.

Ondo Global Markets is focused on providing the approximately 7.5 billion people outside the US¹ with tokenized exposure to global, publicly traded securities markets representing approximately $220 trillion worth of assets.