Ondo Finance goes all in on RWAs with Oasis Pro brokerage acquisition

Source Cryptopolitan

Ondo Finance announced the acquisition of Oasis Pro, a fully registered brokerage. The blockchain platform aims to use the brokerage for its expansion in the RWA tokenization market. 

Ondo Finance, one of the leading tokenization protocols, announced the acquisition of Oasis Pro, a broker fully registered under US regulations. The acquisition will be a part of Ondo’s drive to offer fully regulated access to tokenized securities, specifically targeting US-based investors. 

Ondo will gain access to the infrastructure and market access through Oasis Pro Markets LLC, a wholly owned subsidiary of Oasis Pro, Inc., the entity to be acquired in the deal. Ondo stated no prior relations with Oasis Pro, with no product offerings by Ondo coming through the brokerage. 

The Oasis Pro brokerage was a pioneer in Alternative Trading Systems (ATS), authorized to support digital settlements in both fiat and stablecoins. Oasis Pro is a SEC-registered broker-dealer and can carry digital asset products. Oasis is also a contributing member of FINRA’s Crypto Working Group, affecting the regulatory framework for asset tokenization in the US market. 

This unlocks the next major chapter of tokenized finance,” said Nathan Allman, CEO of Ondo Finance. 

We’re pleased to welcome Pat LaVecchia, CEO of Oasis Pro, to our team. Pat brings deep experience in the digital asset space, particularly around building regulatory-compliant platforms. His leadership and perspective will be a valuable asset as we continue to grow and adapt in this evolving landscape,” Allman continued.

Ondo Finance has already built an infrastructure of custodians, public chain infrastructure, and liquidity protocols. The platform has tokenized over $1.4B in assets, mostly fixed-income securities, bonds, and money markets. 

Ondo Finance expands to tokenized stocks

Ondo Finance announced the acquisition just as tokenized stocks were becoming the next hot asset class. Ondo sees tokenized stocks as digital assets backed 1:1 by publicly traded shares, where settlement is fully on-chain. 

Currently, there is still no clear standard of tokenized stocks, with some platforms offering informal representation of existing shares. Robinhood recently offered tokenized private equity, though later the platform had to explain the token holders were not entitled to an actual share or decisions in private companies. 

Ondo expected the tokenized equity market to increase to $18 trillion by 2033 if accepted as a standard. Ondo also aims to offer tokenized stocks for global investors, in partnership with existing wallets, exchanges, and protocols. 

Current data shows that tokenized stocks are still an asset class valued under $400M. The sector may expand with the growth of XStocks, which offers tokenized shares on the Solana network. 

Oasis Pro already offers tokenized products

The Oasis Pro brokerage already has years of experience with tokenizing various investment products. The brokerage has existed since 2019, limiting its tokenization to private placements. 

The brokerage has even tokenized alternative assets, bringing the diamond market to the Avalanche chain in 2024. 

The brokerage combined crypto infrastructure with a fully regulated license for trading multiple asset classes, removing some of the obstacles to tokenization.

The brokerage company is relatively small, though Ondo retains ambitious plans for tokenized RWAs and wider adoption. Currently, most RWAs are targeting accredited investors, and the tokens are not traded on crypto platforms.

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