Key Highlights
- Ondo tokenized stocks and ETFs are now bridgeable to Hyperliquid HyperEVM via LayerZero.
- Around 35 assets, including SPYon, TSLAon, and QQQon, are currently supported.
- The integration enables advanced strategies like basis trading and delta-neutral hedging.
Ondo Finance, a decentralized platform, today announced that its tokenized stocks and ETFs can now be bridged to Hyperliquid’s HyperEVM using LayerZero. The move expands access to real-world asset (RWA) strategies within one of the largest decentralized perpetuals ecosystems.
According to the announcement, users can transfer Ondo’s tokenized U.S. equities from Ethereum and BNB Chain to Hyperliquid’s HyperEVM environment. The integration allows spot positions in tokenized stocks to be used along with perpetual futures contracts on applicable markets.
Traders can perform advanced strategies like basis trades, funding arbitrage, and delta-neutral hedging to manage risk more effectively. As of now, around thirty-five Ondo tokenized assets are bridgeable to HyperEVM, such as SPYon, QQQon, TSLAon, GOOGLon, and others.
Instead of recreating fragmented on-chain liquidity, Ondo tokenized stocks and ETFs delve deep into the traditional equity markets.
Trading strategies expand on HyperEVM
By giving Hyperliquid users access to tokenized equities with liquidity linked to traditional markets, the integration enables more capital-efficient portfolio hedging and advanced trading strategies that were previously difficult to execute on-chain.
Some early adopters of HyperEVM technology are protocols such as Melt Finance and Felix Protocol. Both of these protocols have incorporated tokenized stocks and ETFs provided by Ondo into their platform, providing investors with the facility to trade in spot equity instruments using the Hyperliquid environment.
Felix has already integrated a large amount of Ondo products, including several hundred U.S. equities and ETFs. The bridging process uses LayerZero’s cross-chain infrastructure, providing users a way to move assets swiftly between source chains and HyperEVM.
The equity tokens issued by Ondo offer exposure to actual securities and include dividend payouts (after tax deductions). Ondo’s tokenized assets also have an underlying asset that is backed by actual shares but is managed by Ondo Global Markets off-chain.
Cross-border treasury redemption
In a separate development, Ondo Finance recently performed what they claim is the world’s first near-real-time cross-border redemption of tokenized US Treasuries.
In partnership with J.P. Morgan’s Kinexys, MasterCard, and Ripple, the pilot involved Ripple performing a partial redemption of their OUSG holdings issued on XRPL. This triggered an automated payment in fiat through MasterCard’s MTN to Kinexys, after which a cross-border payment of USD was made to Ripple’s Singapore bank account, and all of this was done in under one minute.
Wall Street assets move further on-chain
With the increasing popularity of tokenized assets, collaborations such as these showcase the development of the necessary infrastructure needed to make Wall Street products blockchain-native.
According to the announcement, this move will provide greater liquidity and functionality to tokenized stocks while aiding in the development of decentralized finance markets. As a result of the collaboration, which already supports more than 35 tokenized assets, traders can now leverage basis trading, funding rate arbitrage, and portfolio hedging capabilities on Hyperliquid.
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