Ondo Ditches Layer-1 Blockchain for Offchain Execution Layer

Ondo Finance has shifted its focus from building an institution-focused layer-1 blockchain to launching the Ondo Network, an offchain execution layer for financial markets. This new platform is designed to tackle what blockchains handle poorly by default: trade execution speed and privacy.

The Ondo Network separates execution from settlement, allowing for faster and more private trading. It uses Trusted Execution Environments (TEEs), hardware-isolated enclaves on servers, to handle application logic privately at near-central exchange (CEX) speed.

Every enclave carries a cryptographic measurement of its exact code; if one byte changes, the measurement fails. A decentralized attestor set handles trust by checking the measurement against approved code before an enclave can join. Settlement happens on a public blockchain.