Plans to build a dedicated Layer-1 blockchain for real-world assets (RWA) have officially been halted. On July 27, 2026, Ondo Finance charted a new course by announcing Ondo Network - an execution layer that aims to solve a long-standing DeFi dilemma: combining centralized exchange (CEX) speeds with self-custody security, data privacy, and on-chain settlement.
The new layer completely replaces the Ondo Chain project, with the company confirming the two will not run in parallel. The drastic pivot came as the Ondo team was building Ondo Perps and consulting with prospective users. According to Ondo CEO Ian De Bode, findings showed that traders’ biggest bottleneck was not network settlement capacity, but execution speeds lagging behind conventional exchanges.
Confidential Execution Inside Enclaves
To replicate CEX speeds, applications on Ondo Network run inside Trusted Execution Environments (TEEs) or secure hardware enclaves. This isolated environment allows the system to process code rapidly without exposing trading positions and order flow to the public. The approach directly eliminates front-running vulnerabilities that often penalize traders on decentralized platforms.
To prevent the system from turning into a conventional centralized server, Ondo implemented a decentralized group of attestors. They are tasked with screening and approving which code is permitted to run inside the enclaves. This setup ensures that no single operator can unilaterally approve code or move user assets. On the settlement end, all asset transfers are currently settled on Ethereum, with Ondo slating support for additional public blockchains on its roadmap.
24/7 Trading and FINRA Approval
The new infrastructure is already powering its flagship application: Ondo Perps. The perpetual futures platform offers 24/7 trading for equities and commodities using tokenized assets as collateral with leverage of up to 20x. While the underlying technology was only recently unveiled publicly, Ondo Perps has been live since early July for users outside the United States.
On the regulatory front, Ondo subsidiary Oasis Pro Markets provides additional backing. The SEC-registered broker-dealer recently secured FINRA authorization to facilitate NMS stocks, ETFs, mutual funds, and IPOs. Crucially, the license includes approval for stablecoin settlements, bridging traditional financial products with the speed of crypto payments.
Markets responded steadily to the series of updates. Following the announcement, the ONDO token held near $0.40, moving up just 1.1% in 24 hours with a market capitalization of $1.96 billion.
Pragmatic Infrastructure Prevails
Abandoning the ambition of a standalone Layer-1 blockchain in favor of an execution layer is a candid acknowledgment of market demand. Rather than peddling excess infrastructure narratives, Ondo took a step back to build what traders want most: lightning-fast execution without the fear of losing custody of their assets. Source: crypto.news.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
