Max Avery highlighted the significance of this development in a recent post, emphasizing Ondo’s role in bridging traditional financial instruments with blockchain-based solutions. He pointed out that despite Ondo’s rapid growth and success, the broader market has not fully recognized its impact.

Avery stated, “Ondo Finance is building a direct line between well-established financial instruments and on-chain access with XRP Ledger and Stellar and people still aren’t paying enough attention.”

He further explained that Ondo is addressing key inefficiencies in traditional finance, such as slow settlement times and limited accessibility, by leveraging blockchain technology.

The Growth of Ondo’s Tokenized Treasury Market

One of Ondo Finance’s main offerings, OUSG, has already surpassed $1 billion in demand. This product provides exposure to U.S. Treasuries with on-chain accessibility, allowing for 24/7 minting and redemption.

Avery contrasted this with traditional finance, where transactions are restricted by banking hours, often delaying settlements to the next business day. He described OUSG as providing the benefits of Treasuries while incorporating the flexibility of digital assets.

With OUSG now available on the XRP Ledger, investors can gain access to tokenized treasuries in a more efficient manner. Avery noted that this development eliminates arbitrary time restrictions that have long constrained traditional financial markets.

By utilizing the XRP Ledger, Ondo Finance is tapping into a blockchain network known for its institutional partnerships and compliance-focused infrastructure.

USDY and Its Role in Expanding Financial Access

Ondo’s second major offering, USDY, functions differently from traditional stablecoins. Unlike stablecoins that simply hold their value, USDY is backed by U.S. Treasuries and bank deposits, generating yield over time.

Avery highlighted how USDY on Stellar connects to a global payment network spanning 180 countries. This feature allows users worldwide, particularly those without stable access to the U.S. dollar, to benefit from Treasury yields.

Avery explained that the introduction of USDY provides financial opportunities that were previously unavailable. He asked how millions facing inflation and currency devaluation could gain access to stable dollar yields without requiring a U.S. bank account. By deploying USDY on Stellar, Ondo Finance enables broader participation in global financial markets.

Experienced Leadership and Regulatory Focus

Ondo Finance’s leadership includes individuals with extensive experience in traditional finance and digital assets. Avery noted that President Justin Schmidt previously led digital assets at Goldman Sachs, while Vice President Katie Wheeler has held roles at Circle and BlackRock.

Additionally, Ondo has recently appointed Patrick McHenry, the former Chair of the House Financial Services Committee, as Vice Chairman of its Advisory Board. Avery pointed out that McHenry’s addition brings regulatory expertise at a critical time when cryptocurrency policies are still evolving.

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By combining blockchain technology with institutional-level financial expertise, Ondo Finance positions itself as a trusted entity in the tokenized asset space. Avery emphasized that this combination allows Ondo to move faster than traditional financial institutions while maintaining compliance standards that attract institutional investors.

A Multi-Chain Approach to Tokenized Assets

Avery underscored the significance of Ondo’s decision to integrate with the XRP Ledger and Stellar. He explained that each blockchain serves a distinct purpose: the XRP Ledger supports institutional adoption and compliance, while Stellar is well-suited for global payments and financial inclusion. Ondo’s strategic use of these networks ensures that its products align with the strengths of each ecosystem.

Looking ahead, Avery suggested that tokenized U.S. Treasuries are only the beginning. He predicted that corporate bonds, real estate, commodities, and alternative assets could soon follow, making financial markets more accessible and efficient. He described the potential for fractional ownership, automated payouts, and smart contracts that directly interact with real-world assets.

Avery concluded that these advancements represent a shift toward a more accessible financial system.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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As a report has it, the method will be based on Turing Signing Servers (TSS). With advanced performance, it will empower decentralized finance (DeFi) on Stellar blockchain.

In a blog post published on 21st July 2021 by Stellar Community, TSS is described as a network of servers known as turrets, which store smart contracts and will build and sign transactions according to uploaded smart contract specifications at a user’s request.

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The report reads in part as follows:

“TSS thus enables trust-free DeFi protocols on Stellar without requiring an on-chain virtual machine. As a result, the smart contract engine adds no inordinate congestion to the network and retains the efficiency offered by Stellar.”

This means that users can upload smart contracts to any turret which will in turn create a keypair it will use to sign transactions generated by the smart contract and later return the public key of the keypair to the user.

The combination of this network with Stellar’s multi-sig capabilities activates trustless decentralized finance (DeFi) protocols on the Stellar blockchain.

The blog post reads further:

“The developer uploads the DeFi protocol’s smart contracts to multiple trusted turrets and adds the associated public keys as signers on the protocol accounts. Next, the developer modifies the protocol account’s signer weights and thresholds to require most turrets to sign a transaction before it is valid. Then users can run the smart contract by running it across all turrets and aggregating the returned signatures until they have a sufficiently signed transaction.”

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The project, Venus, is targeted at building a secure and reliable network of servers and at implementing short-term forward contract capabilities on Stellar blockchain.

How is this New Method Better than Ethereum’s

The fact that the new method notably reduces transactional pressure on the network. And the fact that part of data is processed off-chain makes it much more resource-efficient than Ethereum.

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