Ondo forms global alliance to reshape tokenized securities amid RWA market surge

The decentralized tokenization platform Ondo Finance has launched the Global Market Alliance (GMA). The Alliance is expected to establish tokenized securities standards and speed up the adoption of tokenized capital markets.

The protocol announced the move on X, noting that seven other crypto exchanges, wallets, and custodians also joined as founding members of the Alliance. These include Solana Foundation, Jupiter Exchange, BitGet Wallet, Fireblocks, Rainbow, Alpaca Finance, Trust Wallet, and 1inch.

However, Ondo Finance hinted that more blockchain and crypto entities would join the Alliance, stating “more to come.”

Its X post also explained why the protocol is starting the coalition, noting that tokenized real-world assets (RWA) are already becoming mainstream, which makes it necessary to have the infrastructure and industry standards ready.

It said:

“Together, the alliance will help shape best practices and standards for tokenized securities around interoperability, investor protections, liquidity, and composability that streamline user access to tokenized RWAs.”

Meanwhile, Ondo Finance noted that all partners in the Alliance have their unique advantages, which are what they will contribute to making the coalition achieve its goals. For instance, the wallets offer a user interface and self-custody, while DeFi protocols bring integration to on-chain RWA and programmatic access to wallets.

Ondo Global Markets might be key to the Alliance

Interestingly, the Alliance also keys into the protocol’s plan to launch the Ondo Global Markets, its tokenization platform. The platform is expected to give wallets and applications direct access to US financial products such as stocks and exchange-traded funds (ETFs) for users outside the US.

While it has yet to launch, it is expected to significantly increase access to on-chain RWA globally for retail and institutional use. The partnerships through the Alliance will ensure seamless integration and an interoperable experience.

Per the official statement, the three core goals of the GMA revolve around interoperability. This will happen through “shared technical and compliance standards” among protocols, interoperability of blockchain-based tools, and improved accessibility and liquidity for investors.

Unsurprisingly, entities involved in the GMA are all bullish on the long-term potential of tokenization. They believe the Alliance will play a major role in enabling most users to access the on-chain financial markets.

Speaking on the Alliance, the COO of Jupiter Kash Dhanda noted that this is the start of the tokenization renaissance, and it is committed to pushing  “finance forward.”

He said:

“We’re proud to be joining this Alliance to help push all of finance forward. Our goal is simple: make trading these assets accessible for every person on the planet with an internet connection.”

Meanwhile, the CEO of crypto custodian Fireblocks, Michael Shaulov, noted that secure and interoperable infrastructure is crucial for the global adoption of tokenized securities, and this is where it intends to play a part.

Tokenization market is up more than 250% this year

Meanwhile, the general bullishness around tokenization is not overstated, given the sector’s growth this year. According to a recently published Binance research, the RWA market is now worth over $23 billion after only $8.6 billion at the start of the year.

The massive growth is mostly due to the boom in tokenized private credit, which accounts for around 58% of the market share. However, tokenized US treasuries have also seen inflows, accounting for 34% of the market.

With all this growth happening without regulatory clarity, there are high expectations that clearer regulations will boost the sector by attracting more investors and giving access to more financial products.

Public securities remain a key area many believe is ripe for tokenization, and several crypto exchanges are already delving into it. However, other RWAs, such as real estate or commodities, attract investors.

Recently, Feniix Energy completed a $75 million acquisition of an oil and gas facility in Latin America through Global Settlement using tokenized debts and equity. Global Settlement noted that this is a first in the sector.

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