Ondo crypto expands to Robinhood Chain with 15 tokenized assets

Ondo Finance has expanded its tokenized stock offerings to Robinhood Chain. According to the issuer, users will be able to trade 15 tokenized stocks and ETFs and swap across Ethereum, BNB Chain, and Robinhood Chain. 

The assets include crypto firms (Strategy, BitMine, Circle), tech firms (Meta, Apple, Tesla, Google), and ETFs (U.S. Copper Index Fund, China Large-Cap ETF). 

Under the hood, the trading of 11 of these products will be powered by Uniswap V4’s StablePair pool. 

Impact of Ondo Finance’s Robinhood expansion

The update was hailed as a key step toward solving liquidity fragmentation. 

One of the largest tokenized stock issuers is now on Robinhood Chain, with Uniswap as its liquidity layer. Ondo Stocks and Robinhood Stock Tokens are the same shares, pegged 1:1 like USDC/USDT.

Here, a tokenized stock, say Apple by Robinhood Chain, is assumed to have the same value as the one issued by Ondo since they both track the value of Apple shares on traditional exchanges. So, they should be exchangeable 1:1, just as USDT is to USDC. 

However, several tokenized asset issuers have not solved the fragmentation. As such, Ondo-Robinhood’s design is a commendable step towards solving the liquidity fragmentation issue. Hayden Adams, founder of Uniswap, echoed a similar stance, adding the economic benefit of the update. 

For the unfamiliar, those who provide liquidity (LPs) earn part of the trading fees. Besides, the stocks, while meant to be 1:1, can be slightly off by a few basis points because they’re from different issuers. That allows for arbitrage opportunities, and traders pocket the difference. 

Still, the design only solves the liquidity problem isolated between Robinhood, Ethereum [ETH], and BNB Chain. Ondo does not solve cross-chain fragmentation on networks like Solana [SOL] and Canton [CC]. In fact, the IMF has flagged this as the main adoption hurdle for tokenized stocks. 

Ondo becomes the 2nd largest tokenized stocks issuer

That said, this will mark Ondo Stocks’ 11th chain. The firm has issued tokenized assets across Ethereum, Stellar, Solana, BNB Chain, XRP Ledger, Sui, Arbitrum, Stripe-backed Tempo, and Mantle. 

Ondo Finance’s total tokenized stock value stands at $930 million as of late October. This is an 8% increase in the past thirty days, with a 25% market share. It’s now the second-largest issuer after Binance’s bStocks, which boasts $1.4 billion in assets’ value.  

Final Summary

• Ondo Finance has expanded 15 tokenized stocks to Robinhood Chain, allowing 1:1 swapping for better liquidity.
• Ondo Stocks is the second-largest tokenized stock issuer with a 25% market share.