Ondo Finance launches CEX-class speed trading network

Ondo Finance launches Ondo Network to replace the original blockchain plan with an execution layer to enable fast, private and unmanaged transactions.

Overview

The Ondo Network replaces the originally planned Ondo Chain, marking the company's shift from settlement to execution. Secure hardware enclosures (Enclaves) are used to process transactions privately, while decentralized verifiers (Atterers) are responsible for verifying approved code. Ondo Perps, the network's first application, provides round-the-clock perpetual contract trading for stocks and commodities. The recently obtained FINRA authorization provides Ondo with an independent infrastructure to conduct its regulated tokenized securities business in the United States.

Ondo Network replaces originally planned Ondo Chain

Ondo Finance officially launched the Ondo Network on July 27, describing it as an execution layer that combines centralized exchange speed, self-custody capabilities, privacy protection, and blockchain-based settlement. Ian De Bode, CEO of Ondo Finance, said this is an evolution of the previously announced Layer 1 blockchain Ondo Chain designed specifically for tokenized real-world assets, and the company will not operate two systems at the same time. He pointed out that in communicating with potential users and building Ondo Perps, execution speed rather than settlement capabilities was the main obstacle preventing online trading platforms from competing with centralized exchanges. Traditional blockchains typically execute, verify and settle transactions through the same public ledger. Although transparent and long-lasting, they expose order flow and slow down transaction applications that require quick matches. Ondo Network separates these functions, allowing transaction execution to take place outside of the public ledger, while asset transfers remain settled on-chain.

How Ondo Network verifies private execution

Applications on the network run in a trusted execution environment, or a secure hardware quarantine. These isolated environments process application code without revealing sensitive information, such as open positions and order flows, to the public. A group of decentralized validators determines what code can run in quarantine. The network uses a multi-party structure to ensure that no single operator can approve unauthorized code, rebuild signature keys, or independently transfer user assets. Asset transfers are currently settled through Ethereum, while Ondo plans to support other public blockchains in the future. The settlement status of the network still remains within the quarantine area, but the company plans to submit it to the public blockchain as the system evolves. Ondo also plans to introduce more verifiers, independent observers, pledge participation mechanisms and additional cryptographic proofs. As these responsibilities become more decentralized, ONDO tokens are expected to be used to support incentives and governance. The system is universal and is not limited to transactions. Ondo said developers can use it for spot markets, lending, structured products, settlement systems, and non-financial applications that require fast and verifiable private execution.

Ondo Perps becomes the first application on the web

Ondo Perps is the first application to run on the network. The platform provides round-the-clock perpetual contract trading linked to stocks and commodities, while allowing traders to use tokenized real-world assets as collateral. Perpetual contracts allow users to engage in leveraged long or short operations and have no fixed expiration date. The product was launched to users outside the United States in early July and supports up to 20 times leverage in selected markets. The platform's initial role demonstrated Ondo's expectations for the web: transactions are conducted privately at speeds close to centralized exchanges, users retain control of their funds, and asset transfers are settled through public blockchain infrastructure. Ondo said the launch of the network will not immediately change the role of ONDO tokens. The asset remains a governance and ecosystem token for the company's real-world assets and market infrastructure.

FINRA authorizes independent U.S. market expansion

The launch of Ondo Network comes as its Securities and Exchange Commission registered broker-dealer subsidiary Oasis Pro Markets received a new U.S. regulatory license. Oasis Pro is authorized by FINRA to cover national market system stocks, ETFs, mutual funds, index funds, and securities issued through initial public offerings. Activities covered by these licenses include retail trade, private placement and underwritten initial public offerings. The framework also supports settlement through fiat currencies or specific stablecoins, including transfers between blockchain wallets. This may allow eligible U.S. retail and institutional investors to obtain tokenized securities through existing brokers, advisers and retirement accounts. However, these licenses do not automatically make Ondo Perps or all existing Ondo products available to U.S. residents. They only provide regulated infrastructure for securities offered by Oasis Pro Markets under SEC and FINRA regulation, while specific products still need to meet separate qualification and compliance requirements.