Financial services company Ondo Finance announced on the 20th that its products are now available on the Solana (SOL) blockchain.
Until now, we have provided services within the Ethereum ecosystem such as Ethereum (ETH) and Polygon (MATIC), but this time we have adopted Solana as a new L1 chain. The company says it will leverage the speed and low cost of the Solana blockchain.
📢 We’re thrilled to announce our leap onto the @solana blockchain, bringing our flagship products, USDY and OUSG, to the Solana community 📢
— Ondo Finance (@OndoFinance) December 19, 2023
connection: Ondo Finance launches RWA token “USDY” on Ethereum L2 “Mantle”
There are two products that can now be accessed on Solana: “USDY” and “OUSG”. USDY is an RWA (real asset) token backed by short-term U.S. government bonds and bank deposits, allowing holders to use it like a U.S. dollar stablecoin while earning a yield.
What is RWA?
Abbreviation for “Real World Asset.” RWA that is tokenized on the blockchain includes real assets such as real estate, artwork, trading cards, and securities such as stocks and bonds.
▶️Virtual currency glossary
connection:Why investors are interested in real asset tokenization and what is Real World Assets (RWA)?
OUSG has tokenized BlackRock’s short-term government bond ETF (exchange traded fund), which is also an RWA-type asset. OUSG can only be purchased and used by investors who meet the conditions.
Users can now use two assets on services on Solana. Ondo Finance says it expects new use cases to emerge with DeFi and will build the next generation financial infrastructure on Solana.
Nathan Allman, CEO of Ondo Finance, commented:
Solana’s DeFi ecosystem has proven to be innovatively scalable, has low fees, and strong resilience and growth potential.
By supporting Solana, we will not only grow, but we will also see the birth of new DeFi apps that utilize tokenized U.S. Treasuries. It should benefit a wide range of developers and users.
Raydium, Jupiter, and Orca DEXs (decentralized exchanges) are collaborating to support the Solana blockchain. These three DEXs will allow you to obtain USDY from the day of the announcement.
The Solana ecosystem was severely damaged by the collapse of cryptocurrency exchange FTX. Solana and other decentralized apps in its ecosystem received significant funding from FTX and related companies.
connection: FTX bankruptcy hurt Solana ecosystem, no prospects for recovery
However, as Allman notes, the Solana ecosystem has since shown strong resilience. Solana price is up over 500% year over year (see CoinGecko).
In addition, the amount of network activity is increasing, and the main reasons for this are low fees and high processing capacity.
As an example, it was discovered that Solana Chain maintained the number one position for three consecutive days in terms of the number of stablecoin transaction amounts on each chain.
— DEGEN NEWS 🗞️ (@DegenerateNews) December 19, 2023
connection: Solana’s breakthrough, market influence of blockchain technology driving 500% annual growth
In addition, yesterday, Circle, a major stablecoin company, revealed that its Euro stablecoin “EURC” also supports Solana.
“Developers and users will be able to use both EURC and USDC (U.S. dollar stablecoins) on Solana to build faster, lower-cost ways to send, pay, and save,” Circle said of Solana’s adoption. You can trade.”
connection: Circle’s Euro stablecoin “EURC” also adopts Solana blockchain