Chainlink, the main decentralized oracle community, has launched reside on-chain value feeds for Ondo Finance’s tokenized U.S. equities on the Ethereum blockchain.
Ondo International Markets, the tokenization platform created by Ondo Finance, has built-in Chainlink Information Feeds to ship dependable, institutional‑grade value data for tokenized stocks akin to SPYon (a tokenized SPDR S&P 500 ETF), QQQon (a tokenized Invesco QQQ ETF), and TSLAon (a tokenized Tesla share).
These feeds at the moment are reside on Ethereum and updating in actual time, permitting decentralized purposes to reference correct market knowledge for these property instantly onchain.
Chainlink now offers Ondo’s tokenized stocks reside value updates on Ethereum.
Lending in DeFi have to be clear, since correct pricing is essential: the protocol should know and proceed to comply with the present worth of the collateral asset because it strikes. With out reside prices, the protocol wouldn’t know when the asset is turning into dangerous, when it wants adjustment, or when it wants to be liquidated to shield the lending pool.
Tokenized equities (as opposed to passive investments) at the moment are accessible to be used on a DeFi protocol as a result of they’ve actual numbers on which it could actually set up guidelines for borrowing, collateral limits, and liquidation thresholds.
Ondo additionally mentioned the tokenized stocks stay aligned with the true worth of the equities they symbolize as a result of the worth feeds embrace updates like dividends and different company expenses. This retains tokens up to date, so DeFi apps can use the most recent values that mirror what is occurring in conventional inventory markets.
The primary group of supported tokenized equities is SPYon, representing the SPDR S&P 500 ETF, QQQon, representing the Invesco QQQ ETF, and TSLAon, representing Tesla inventory. Ondo mentioned they are going to add extra tokenized stocks and ETFs with time as Chainlink covers extra choices and as DeFi protocols begin integrating these property.
Euler now lets folks borrow stablecoins through the use of Ondo’s tokenized stocks as collateral.
Customers on the modular lending platform Euler can now use Ondo’s tokenized US stocks as collateral in a DeFi lending market and even borrow stablecoins towards them. Individuals can use these tokenized equities to unlock liquidity on Ethereum as a substitute of simply holding them to watch the worth transfer.
It’s the primary time folks can use tokenized stocks as collateral in Ethereum-based lending, as a result of customers often purchase them for publicity however by no means use them as crypto property like ETH or stablecoins.
Till now, tokenized real-world property have been purely passive. Buyers may maintain a tokenized model of a inventory and monitor its value, however they may not borrow towards it, leverage it, or use it to generate revenue as conventional finance permits. In conventional finance, stocks are sometimes used as collateral for loans, and Ondo desires to make this accessible in DeFi.
Now, Ondo believes that the items are lastly coming collectively. Tokenized stocks can start to behave like true constructing blocks in decentralized finance, with sturdy liquidity pushed by conventional inventory exchanges, and Chainlink offering dependable on-chain value feeds.
CEO of Euler, Jonathan Han, mentioned customers can now borrow towards securities as a substitute of promoting them and giving up long-term income.
In fact, good markets require good threat administration, particularly when new types of collateral are used. So Ondo mentioned the Senator will set and monitor important security limits, akin to collateral necessities, liquidation ranges, and borrowing limits, to make sure the system stays steady even when markets develop into risky.
Sentora CEO Anthony Demartino mentioned retail traders didn’t have the liberty to use their securities earlier than, however they’ll now use their property productively whereas sustaining their long-term investments by tokenization.
Ondo additionally made it clear that lending is simply step one, because it plans to increase tokenized equities into vaults, structured merchandise, and broader DeFi purposes.
So, finally, Ondo’s tokenized stocks may contribute to the broader on-chain finance ecosystem by making it simpler to combine conventional programs with decentralized ones.
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