On October 30, Ondo Finance announced that it had formed a strategic partnership with Chainlink.
This made the oracle network the official data and interoperability provider for its regulated tokenized stocks platform.
Chainlink’s Cross Chain Interoperability Protocol will be the messaging layer for the deal, which the companies say will help institutions safely bring traditional assets on chain.
As part of the deal, Chainlink will provide Ondo’s platform with customized price feeds and other data for more than 100 tokenized stocks and ETFs.
The partners also made CCIP the best cross-chain framework for banks and brokers that want to move assets between networks without losing control.
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The goal of the setup is to make sure that corporate actions, dividend changes, and other market events all flow into on-chain instruments in the same way that they do for off-chain instruments, so that they can be valued and traded with the same care.
The announcement comes after Ondo recently added tokenized U.S. stocks and ETFs to its Global Markets offering.
This was done to reach a wider range of retail and institutional users that rollout showed how the project is multi-chain and how important it is to have consistent, verifiable data in all environments.
Ondo has already secured more than a billion dollars in assets across its products. By making a single oracle and cross-chain standard, it is betting that this will lower the risk of fragmentation as volumes rise.
The move also comes at a time when interoperability is becoming less of a talking point for developers and more of a must-have for capital markets.
Chainlink worked with Kinexys by J. P. Morgan and Ondo on a test delivery versus payment transaction across a permissioned network and a RWA testnet earlier this year.
This showed that multi-network settlement can be done with enterprise guardrails that test gives us a taste of how tokenized funds and payment rails might work together as more assets go on chain.
Franklin Templeton and Binance worked together to make tokenized securities more widely available.
This shows that established companies want distribution and plumbing that are similar to public markets, even when the instruments are stored on blockchains.
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At the same time, the Solana ecosystem is trying to attract treasury managers, and one company became the first Solana treasury company to list on Nasdaq.
This shows that back office finance is starting to meet public equity markets. These actions set the stage for Ondo’s choice to lock in standardized data and cross-chain movement.
A single oracle framework can get rid of data differences that cause prices to be wrong, and a standardized cross-chain rail lowers the risk of problems when assets or collateral need to move between networks.
