Ondo Finance introduced the Ondo Network on July 27, an execution layer that replaces its planned Ondo Chain blockchain. Applications run inside secure hardware enclaves so trades stay private and fast, while asset transfers still settle onchain. Ondo Perps is the first application on the network.
Ondo Finance has dropped its planned Layer 1 blockchain for an execution layer instead. The company introduced the Ondo Network on July 27, describing it as a combination of centralized exchange-like speed with self-custody, privacy and blockchain-based settlement.
Ian De Bode, CEO of Ondo Finance, described the product as an evolution of Ondo Chain, a previously announced Layer 1 blockchain designed for tokenized real-world assets. But the two will not run at the same time, according to De Bode: "we will not be running the Ondo Network and the Ondo Chain in parallel."
The company changed its approach while building Ondo Perps and consulting potential users. According to Ondo, those discussions showed that execution speed, rather than settlement capacity, was the main obstacle preventing onchain trading platforms from competing with centralized exchanges.
Enclaves move execution off the public ledger
Traditional blockchains generally execute, verify and settle transactions through the same public ledger. That structure delivers transparency and a durable transaction history, but it can expose order flow and slow applications that need rapid trade matching.
The Ondo Network splits those functions, so trade execution happens away from a public ledger while asset transfers still settle onchain. Applications run inside trusted execution environments, also known as secure hardware enclaves, which process code without revealing sensitive information such as open positions and order flow to the public.
A decentralized group of attestors decides which code the enclaves may run. Under the network's multi-party structure, no single operator can approve unauthorized code, reconstruct a signing key or independently transfer user assets.
Asset transfers currently settle on Ethereum, and Ondo plans to support other public blockchains. The settled state stays inside the enclaves for now, yet the company intends to commit that record to public blockchains as the system develops.
Ondo Perps becomes the first application
Ondo Perps runs first on the network, offering round-the-clock perpetual futures linked to equities and commodities while letting traders post tokenized real-world assets as collateral. Perpetual futures allow users to take leveraged long or short positions without a fixed expiry date.
The product launched earlier in July for users outside the United States and supports up to 20 times leverage on selected markets. Ondo said the network launch does not immediately alter the ONDO token's role, which remains the governance and ecosystem token for the company's real-world asset and market infrastructure.
ONDO traded near $0.40 following the announcement, up 1.1% over the past 24 hours with a market capitalization of approximately $1.96 billion, according to data from CoinGecko.
Source: crypto.news
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