Key highlights:
- Ondo Finance has launched an offchain execution network that processes trades outside public blockchains.
- The network powers Ondo Perps with final settlement still recorded on public blockchains.
- ONDO price fell by 5% over the last day amid reports of the pivot.
Real-world asset tokenization platform Ondo Finance has launched Ondo Network, an off-chain execution network, following its earlier bet on an institution-focused layer-1 blockchain. The company said the new offchain powers Ondo Perps, its perpetual futures platform, and serves as a general-purpose execution layer for financial applications beyond derivatives.
Ondo ditches L1 blockchain ambitions for offchain execution network
Instead of processing trades directly on a blockchain, Ondo Network executes transactions inside Trusted Execution Environments (TEES), also known as enclaves. Independent attestors verify that the software is unchanged while public blockchains continue to handle the final settlement of asset transfers.
The new Ondo Network separates execution, verification, and settlement into different layers. According to an X post, it allows applications to combine the speed and privacy associated with centralized exchanges with the verifiability and non-custodial design of blockchain systems.
Although Ondo said transactions ultimately settle on public blockchains, it did not disclose the identity or number of attestors securing the network. The launch represents an evolution from Ondo Chain, the layer-1 blockchain project the company introduced in February 2025 to support institutional-grade tokenized financial assets.
“Our mission has always been to make finance more accessible, and blockchain was our most powerful tool for getting there,” said Ondo in a statement. “ But we always let the goal, not the technology, lead.”
Building Ondo Perps led the company to conclude that many of the infrastructure challenges facing financial markets could be solved without creating a conventional blockchain. Rather than abandoning its original vision, Ondo described the new network as a continuation of its original vision.
The company said future upgrades could include proof-of-stake security, greater on-chain settlement, and selective privacy features, making the network resemble a traditional blockchain. Markets reacted negatively to the pivot from a L1 blockchain model, with ONDO falling by over 5% over the last day. Last week, ONDO surged by nearly 40% amid rising institutional demand for tokenization.
Built for more than perpetual futures
While Ondo Perps is the first application running on the Ondo Network, the company said the infrastructure is designed for broader use. Ondo pointed out that developers can build spot markets, lending products and other financial applications that require high-speed execution and privacy.
“The future of open financial markets won’t be defined by onchain or offchain, but by the properties that they need to function: speed, privacy, robustness, verifiability, composability, and access,” said Ondo.
However, traditional Web 2 companies are turning their gaze to blockchain technology, eyeing its speed and security. At the start of July, Robinhood launched the Robinhood Chain, garnering huge DEX volumes surpassing Ethereum and Base.
Meanwhile, emerging Ethereum research organizations are scrambling to prepare the network for an avalanche of Web 2 institutions building on the network.
Source:: Ondo Pivots Away From Layer-1 Blockchain With New Offchain Execution Network