Ondo Finance and Chainlink are joining forces to advance the infrastructure for tokenized securities and bring financial institutions on-chain. The strategic collaboration will enable Ondo to utilize Chainlink’s oracle services to ensure the seamless execution of tokenization for real-world assets (RWA).
Ondo Finance, Chainlink to bring financial institutions on-chain
Ondo Finance announced that its partnership with Chainlink aims to tokenize RWAs, creating a suitable platform for leading institutions to move their assets and operations on-chain.
So far, Ondo has built one of the most prominent institutional ecosystems for RWA tokenization, boasting over 100 leading entities and spanning various blockchains and decentralized applications (dApps).
Tapping Chainlink’s oracle services allows Ondo to advance the infrastructure, enabling institutions to move their services on-chain. The collaboration builds on existing initiatives between Ondo and Chainlink, which include leading banking institutions and capital markets stakeholders such as SWIFT and Euroclear.
Ondo stated that Chainlink will serve as its “official oracle provider for its tokenized securities, unlocking new DeFi use cases, such as vaults, structured products, lending protocols, and more.”
Chainlink boasts an institutional-grade data infrastructure, promising reliable data inputs across all supported blockchains for Ondo’s tokenized stocks and Exchange Traded Funds (ETFs).
“By securing its tokenized stocks with Chainlink, Ondo is redefining how traditional financial instruments can operate on-chain in a programmable, composable, and globally accessible way,” Sergey Nazarov, Chainlink co-founder, said. “This is how we build the next generation of capital markets.”
Technical outlook: ONDO and Chainlink extend decline
Chainlink is trading around $17.00 at the time of writing on Thursday, weighed down by the broader bearish wave in the cryptocurrency market. Its position below key moving averages, including the 200-day Exponential Moving Average (EMA) at $18.88, the 50-day EMA at $19.72 and the 100-day EMA at $19.83, highlights prolonged bearish sentiment.
The Relative Strength Index (RSI) at 41 and declining indicates that bearish momentum is increasing. Investors will likely continue to reduce their risk exposure if the Moving Average Convergence Divergence (MACD) triggers a sell signal with the blue line crossing below the red signal line, as the indicator generally falls. Key areas of interest for traders are $15.72, previously tested on October 17, and $12.76, tested in early July.
LINK/USDT daily chart
As for ONDO, the token is largely in sellers’ hands, trading at around $0.68 at the time of writing. Like LINK, ONDO sits below the 50-day EMA at $0.82, the 100-day EMA at $0.87 and the 200-day EMA at $0.89.
The RSI at 36 and falling toward oversold territory indicates that bearish momentum is intensifying. If the MACD indicator triggers a sell signal, the path of least resistance would remain downward, increasing the odds of ONDO sweeping liquidity at $0.62, a support level last tested in June.
ONDO/USDT daily chart
Still, ONDO could reverse the trend if investors buy the dip, citing ecosystem developments, including the partnership with Chainlink. Key targets are the 50-day EMA at $0.82 and the 200-day EMA at $0.89.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.