How Dynamic Provided Enterprise-Grade Wallet Infrastructure to Help Ondo Finance Reach $1B in TVL

Introduction to Ondo Finance

The tokenization of real-world assets (RWAs) is one of the most important frontiers in crypto, and Ondo Finance is at the center of it. Ondo aims to democratize access to institutional-grade financial products, such as treasury bills. To do so, Ondo offers a powerful suite of tokenized assets, cross-chain infrastructure, and platforms for both institutions and onchain users.

Its products simplify access to real-world assets by aligning them with DeFi standards of transparency and interoperability. This approach is showing early success, with Ondo quickly expanding across other layer-1 and layer-2 networks. That momentum is backed by a significant milestone, with Ondo recently reaching over $1 billion in total value locked (TVL).

This vision comes to life through a growing lineup of products designed to bring traditional finance onchain:

• USDY: A yield-bearing stablecoin backed by U.S. Treasuries and bank demand deposits. USDY offers a regulated and transparent offering for real-world yield, and is well positioned to be used across DeFi.
• OUSG: Institutional access to short-term U.S. Treasuries with instant minting and redemption.‍
• Ondo Global Markets: Tokenized access to thousands of traditional assets such as stocks, bonds and ETFs. Every tokenized asset is backed 1:1.‍
• Flux: A lending and borrowing protocol for tokenized assets, enabling users to unlock liquidity from OUSG.‍
• Nexus: A minting and redemption interface allowing institutions to offer tokenized assets to their own clients.‍
• Ondo Chain: An upcoming Layer-1 blockchain built for the native issuance and settlement of real-world assets.‍
• Converter: A mechanism for fast and simple conversion between Ondo’s native tokens.‍
• Bridge: A secure and efficient portal for transferring Ondo’s native tokens across blockchains with deep liquidity.

The Challenge

Ondo needed a wallet infrastructure partner that could deliver on both security and compliance. It was also essential to restrict platform access to qualified users, especially given the responsibility of working with large sums on behalf of institutions. On top of that, Ondo wanted to avoid the heavy lift of building a custom solution in-house. In summary, the team needed to solve for the following challenges:

1. Ensuring their wallet infrastructure partner meets the highest standards for security. When working with institutions, the bar is raised. The chosen provider needed a strong track record of securing assets at scale and meeting enterprise-grade security standards.
2. Enforcing strict access controls and maintaining regulatory compliance. Access to Ondo’s platform needed to be limited to qualified users in approved geographic regions.
3. Delivering a unified experience across every blockchain in the Ondo ecosystem. Ondo supports multiple chains, and any solution needed to work seamlessly across them without sacrificing performance.
4. Enabling users to connect and use any external wallet of their choice. To lower onboarding friction, Ondo needed a wallet provider that supports an extensive list of external wallets.
5. Avoiding the time and complexity of building a solution in-house. Ondo needed a partner that could provide a production-ready solution, so their team could stay focused on core products and institutional relationships.
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‍The Solution

With these hurdles in mind, Ondo Finance called upon Dynamic to implement the following solutions:

1. Enterprise-Grade Wallet Infrastructure: Like Ondo, Dynamic places security at the center of everything it builds. Ondo chose Dynamic for its robust, built-in fraud prevention tools and its use of trusted execution environments and secure enclaves to safeguard transactions. Ondo also valued how effortlessly Dynamic fit into their existing stack. The integration took minutes and required no workflow disruptions.
2. Multi-Chain Wallet Adapter: To accommodate users with various wallets on different chains, Dynamic provided Ondo with its multi-chain wallet adapter. This immediately allowed Ondo users to connect over 500 external wallets to the platform, with support for every EVM chain and much more.‍
3. Developer Dashboard with Access Controls: In addition to wallet and auth tools, Dynamic’s developer dashboard provided Ondo with a comprehensive interface to manage its users. This dashboard also allows Ondo to set roles & permission for users, manage wallets and analytics, and toggle on different features and filters.