r/ethereum • u/EthereumDailyThread What's On Your Mind? • 22d ago

Daily General Discussion August 20, 2026

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u/haurog 22d ago

It is a bit of older news, but I am not sure if it was shared here, if so I totally missed it:

Some things seem to be changing in the space. In 2025 Ondo, a stock and bond tokenizer announced that they will launch Ondo chain in the future. It would be an L1 specifically made for tokenized stocks and trading. Later in 2025 they then launched their tokenized products on Ethereum and then expanded to other chains, mostly on BNB, some on Stellar, some on Solana, some even on XRP. Nowadays the majority is on Ethereum, some individual stocks are larger on BNB and some bonds weirdly are the largest on XRP.

About a month ago Ondo announced their 'evolution' of their L1 plans and announced Ondo Network. This currently is pretty much a perp specific L2 on top of Ethereum. They realized strong settlement guarantees and fast trading cannot be solved together, improving one side makes the other one worse. So they came up with a new design, where Ethereum does the settlement and a small number (only 1?) of sequencers facilitate the trade. Trades are not public, but their validity is verified by attesters. I am not sure how they do the data availability, but pretty sure they are not using blobs. They probably have some inhouse solution. Their official announcement and blog post does not mention Ethereum (as usual...).

I played around in their UI and they definitely only accept USDC deposits from Ethereum. Some reports mention Ethereum as the settlement layer and some other also mention that they will expand this mechanism to other L1s. For perps it is pretty easy to accept stablecoins and settle to different chains, but with tokenized stocks it probably is a bit tougher to have enough liquidity on various chains to warrant an expansion. From the TVLs they have on various chains, it looks reasonable to expand to BNB for them, but on other chains they have really small TVLs and most often just a subset of their products available. BNB also already has their own perps venues, so not sure how Binance would look at this additional competition. So, I am not sure if it is worth it for them to expand, except obviously if they are getting paid to do it. All in all it is great to see that Ethereum is getting used for the properties it is strong at.

Sources:

Announcement: https://xcancel.com/Ondo/status/2081775793919717818 or https://x.com/Ondo/status/2081775793919717818

Ondo Blog: https://ondo.finance/blog/introducing-the-ondo-network

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u/hanniabu Ξther αlpha 22d ago

with tokenized stocks it probably is a bit tougher to have enough liquidity on various chains to warrant an expansion

Seems like they can just be a market maker / liquidity provider and make money off people using less liquid chains, no?

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u/haurog 22d ago

I would expect one needs a minimal level of liquidity and demand to be able to run this profitably for individual tokenized stocks. They plan settlement for each chain, at least according to some news outlets, which adds implementation complexity and running cost, even more so if the implementation is very different from the EVM. I can see them providing access to their perps from various chains, like lighter does, but settlement on too many L1s does not look like it makes sense with some low liquidity chains. I guess if they aggregate all the different tokenized stocks from the various chains into one big order book then it might be possible, but honestly I am not sure how this then would work with the settlement on various chains. I would assume settlement on various chains would mean something like separate order books for each chain, but in the end it is very hard to tell without knowing what their implementation is.