TLDR
- Ondo Bridge enables native cross-chain transfers without wrapped tokens or liquidity pools.
- USDY transfers are live between Ethereum and Mantle using Ondo Bridge.
- Tokens remain fully native on each chain and avoid slippage during transfers.
- The bridge uses Axelar plus Ondo validations for layered cross-chain security.
The launch allows users to move Ondo-issued assets between blockchains without relying on wrapped tokens. The development is framed around enabling cross-chain transfers for tokenized stocks and similar assets through modern interoperability layers. The system is now live, starting with support for USDY transfers, and is designed to operate continuously under defined risk controls.
Ondo Enables Cross-Chain Transfers for Tokenized Assets
Ondo Finance has launched Ondo Bridge, a mechanism that enables native cross-chain transfers for its tokenized products. The bridge allows Ondo-issued tokens to move between supported blockchains without conversion into wrapped assets. This approach supports the broader goal of enabling cross-chain transfers for tokenized stocks and other real-world assets.
The initial rollout supports USDY transfers between Ethereum and Mantle. USDY is a tokenized note backed by short-term U.S. Treasuries. It functions in a similar way to stablecoins while offering a variable yield. Ondo stated that USDY currently provides an annual yield of about 5.1 percent.
Ondo designed the bridge to support direct issuance on each chain. Tokens received on the destination chain are issued by Ondo itself. This structure avoids custody risks often linked to wrapped bridge assets.
Native Bridging Model Removes Wrapping and Slippage
Ondo Bridge uses a native token model across supported networks. Tokens exist independently on each chain but remain linked through controlled supply management. When a transfer occurs, tokens are burned on the source chain and issued on the destination chain.
This model removes the need for liquidity pools or wrapped token contracts. As a result, users receive the same token amount on the destination chain. Ondo confirmed that transfers do not involve slippage or pricing adjustments.
Native bridging also supports unified liquidity across chains. Traders can move assets between decentralized exchanges on different networks. This helps align prices and supports secondary market activity for Ondo-issued tokens.
The structure allows users to access yield and composability features regardless of the chain used. Ondo stated that this design supports consistent asset behavior across ecosystems.
Risk Controls Built on Multi-Layer Messaging Systems
The bridge uses a layered risk management framework. Ondo partnered with Axelar to provide cross-chain communication and message validation. Axelar handles the base messaging layer between blockchains.
Ondo added an internal validation layer on top of this system. Each transfer requires multiple checks before completion. The number of validations depends on the transaction size.
Smaller transfers require fewer approvals, while larger transfers need additional verification. For example, lower-value transfers require one Axelar and one Ondo validation. Larger transfers require extra Ondo validations.
Ondo stated that this structure allows dynamic security adjustments. It also ensures consistent baseline protection for all transfers. The firm plans to add more messaging protocols over time to strengthen redundancy.
Expanding Interoperability for Tokenized Finance
Ondo Bridge reflects a broader trend toward interoperability in tokenized finance. Cross-chain access is becoming important for tokenized stocks and real-world assets. These assets often need flexible settlement across networks.
The bridge aligns with interoperability models seen in protocols like LayerZero. These systems aim to move assets across chains without wrapping. Ondo’s approach follows similar design principles while using its own validation framework.
The company confirmed that Ondo Bridge is designed for gradual expansion. More chains and assets may be added over time. Each addition will follow the same native issuance and risk control structure.
Ondo stated that the goal is to support safe and efficient cross-chain access. The bridge currently focuses on infrastructure rather than consumer-facing features. Further updates are expected as adoption grows.
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