What we'll cover in this article:

🔹 $ONDO Utility & Protocol Revenue 💸
🔹 Token Distribution & Supply Schedule 🪙
🔹 Investors & Funding Rounds 📈
🔹 $USDY, $OUSG & Zero Inflation 🔥
🔹 Tokenizing Wall Street via Ondo Global Markets 🌐

What is Ondo Finance?

Ondo Finance is a decentralized platform for Real World Asset (RWA) tokenization like US treasuries and stocks, bridging TradFi with crypto.

It offers products such as USDY (yield-bearing stablecoin), OUSG (tokenized US treasuries) as well as tokenized stocks (AAPLon, TSLAon).

Ondo's History

• 2021: Founded by two former Goldman Sachs employees Nathan Allman & Justin Schmidt

• March 2022: Raised $20M in Series A funding

• Jan 2023: Launch of OUSG (one of the first on-chain treasury funds)

• Early 2025: Acquisition of Strangelove Labs & Oasis Pro => including their SEC-registered broker-dealer license

• Sep 2025: Launch of Ondo Global Markets (tokenizing over 100 US stocks & ETFs)

$ONDO Token Overview

• Circulating supply: 3.16B

• Max supply: 10B

• ONDO Price: $0.90

• Market Cap = $2.85B

• FDV = $9B

Investors & Funding

A) Seed Funding:

• Date: August 2021

• Money raised: $4M

• Price per token: ~0.013 ($130M FDV)

• Ondo sold: ~307M (3%)

• ROI: ~6,800%

B) Series A:

• Date: March 2022

• Money raised: $20M

• Price per token: $0.02 ($200M FDV)

• ONDO sold: 1B (10%)

• ROI: ~4,400%

C) Community Sale:

• Date: May 2022 on CoinList

• Money raised: $10M

• Tranche 1 price: $0.03 ($300M FDV)

• Tranche 2 price: $0.055 ($550M FDV)

• ONDO sold: ~200M (2%)

Total Money Raised: $34M

Ondo Token Allocation

• Community Sale: 200M (ICO via Coinlist)

• Private Sale: 1.3B (investors)

• Protocol Development: 3.3B (core contributors & team)

• Ecosystem Growth: 5.2B (growth incentives & airdrops)

Token Unlock Schedule

• Cliff unlocks at 12, 24, 26, 48 and 60 months after TGE.

• Cliff unlocks happen each year on January 17th.

• Final unlock for investors & team members: Jan 17, 2028.

• Final unlock for ecosystem fund: Jan 17, 2029.

Circulating Supply

• 34% Unlocked & Circulating

• 66% Locked

Full circulation expected by January 2029.

CEX & DEX Listing

CEXs: Binance, Coinbase, ByBit, OKX, KuCoin, HTX

DEXs: Uniswap on Ethereum

Inflation Rate

• Protocol Inflation Rate: 0%

• Fixed supply (10B ONDO) with no new emissions

*ONDO is currently an ERC-20 token on Ethereum. Very soon, as the Ondo L1 chain launches (currently in testnet), the token will migrate to Ondo chain.

How will Ondo pay validators if inflation is at Zero?

A) Validators will be able to stake yield-bearing RWAs

• Taking a small cut from these yields (tokenized treasuries & stocks)

• Securing the network, bridges, and oracles

B) Transaction fees collected on the network

• Paid in RWAs or stable assets

Token Utility

1. Governance: Voting rights on proposals, parameter changes, and network upgrades.

2. Security & Staking: Holders can stake ONDO to secure the network and earn rewards. (Once Ondo chain is live)

3. Fees: Potential revenue sharing & access to protocol yield.

Ondo's Core Product Suite

A) USDY = Ondo US Dollar Yield Token
B) OUSG = Ondo Short-Term US Treasury Fund
C) Ondo Global Markets (tokenized stocks & ETFs)

A) USDY = Ondo US Dollar Yield Token

USDY is a yield-bearing stablecoin backed by interest earned from short-term U.S. Treasuries and bank deposits.

• TVL: $692M

• APY: 4%

• Price: 1.1079

• Live on 8 chains

USDY yield accrues to the token itself. (Available to non US individuals.

B) OUSG = Ondo Short-Term US Treasury Fund

OUSG is a tokenized treasury note that gives on-chain investors exposure to short-term U.S. Treasuries.

• TVL: $724M

• APY: 4.07%

• Price: 112.77

• Live on 4 chains

Available to accredited investors (investment fund).

C) Ondo Global Markets (Ondo GM)

Ondo GM is a platform that tokenizes U.S. stocks and ETFs and brings them on-chain.

It launched in September 2025, with 100+ tokenized stocks & ETFs.

• Live on Ethereum (soon expanding to other chains)

• Backed 1:1 by actual securities

• Integration with Ledger Live & other partners

Ondo Tokenized RWAs (TVL) by Asset:

• OUSG: $744M (42.8%)

• USDY: $659M (38.5%)

• SPYON: $24M (1.4%)

• IVVON: $20M (1.2%)

=> The more tokenized RWAs (TVL) on Ondo, the higher protocol revenue.

RWAs issued via Ondo: $1.72B

• $1.36B on Ethereum

• $246M on Solana

• $110M across XRPL, Mantle, Sui & Noble

Protocol Revenue

Ondo generates revenue from management fees on tokenized RWAs

• USDY: 10–30bps "spread" on T-bills, + 20bps redemption fee

• OUSG: 0.15% management fee + 0.15% fund expenses

• Ondo Global Markets: tbd (swap fees, mint/redemption fees, integration fees, etc)

Protocol Fees:

• Avr. weekly fees: $1.08M

• Avr. monthly fees: $4.53M

• Yearly fees forecast: $55M

These numbers are total yield generated on Ondo assets. The protocol takes a 0.3%–0.5% cut on it.

=> Weekly protocol revenue: $1.08M x 0.03 = $32,400
=> Monthly revenue: $136K
=> Yearly revenue: $1.65M

*Protocol revenue is currently directed to the Ondo treasury. Future buybacks or distribution to holders could be enabled by governance.

USDY + OUSG Revenue Forecasts:

Base case: ~$4.5M
Moderate case: $100M
Bull case: $2.8B

Bull case assumptions:

• RWA market grows to $20T by 2030

• Ondo's market share = 5%

Ondo Global Markets Revenue Forecasts:

This is much harder to forecast cuz:

• Ondo GM just went live 1 month ago

• Margins and taker fees have yet to be determined

• No fixed annual fee; revenue will most likely come from trading fees

Current revenue: $278K
Moderate case: $55M
Bull case: $2.1B

Assumptions:

• Ondo takes a 0.05%–0.1% taker fee on native swaps on Ondo

• Ondo takes a 0.025%–0.015% cut on GM assets traded on other chains

• Bull Case: Ondo captures 5% of the daily trading volume of the US stock market ($400B)

Competitors

Stablecoins: USDY
=> USDC, USDT, USDe (not yield bearing)
=> USDe (Ethena), SUSD (Maker), USDG (Paxos), AUSD (Agora)

Tokenized Treasury Funds: OUSG
=> BUIDL (BlackRock), BENJI (Franklin Templeton), USTB (Superstate)

Tokenized Stocks: AAPLon, TSLAon
=> xStocks, Securitize, Plume, Mantra, Injective, etc

Roadmap & Future Catalysts

• Launch of Ondo Chain: native support for Ondo GM tokens

• Ondo Catalyst: $250M fund to invest in ecosystem projects

• Multichain rollout of Ondo GM (stocks) to Solana, BNB Chain, and more

• DeFi integrations: lending/borrowing, perps

• Tokenization of new asset classes: real estate, commodities, private equity & credit

To sum it up: The Good

a) Institutional credibility, strong brand and first-mover advantage
b) Solid revenue with massive growth opportunities
c) Strong technical team + broker-dealer license
d) Close ties to the U.S. government, SEC and regulators
e) Full-stack integration with Ondo Chain
f) Diversified product suite (stables, treasury fund, stocks)

Challenges

1. Big token unlocks until 2028

2. Fierce competition in the RWA space

3. Execution risk of Ondo Chain, onboarding users & building a thriving ecosystem around it

4. Unproven validator economics (zero inflation)

5. Regulatory uncertainty (changing SEC rules & tokenized securities laws)

Future Outlook

Ondo's success will hinge on the ability to turn its first-mover advantage in tokenized RWAs into a sustainable business bridging TradFi and DeFi, while maintaining trust on both sides. The launch of Ondo Chain will be of paramount importance in this journey.

Full Tokenomics thread on X!

Thanks for reading folks!

We hope this article helped you stay up-to-date with the latest developments in the Interchain.

Disclaimer

This article is intended to educate readers about certain topics and should not be considered financial advice in any way.