Ondo Finance Abandons Layer-1 Blockchain Plan, Launches Offchain Execution Network

Ondo Finance has made a significant shift in its blockchain strategy by launching an offchain execution network, Ondo Network. This move comes after the company announced plans for a layer-1 blockchain, Ondo Chain, in February 2025. The new network will handle trades outside of public blockchains and is already being used by Ondo Perps, its perpetual futures platform.

Ondo Network relies on enclaves, or Trusted Execution Environments, to run trading software inside a protected computing environment. A group of operators checks that the software has not been altered, with each holding part of the digital key needed to authorize transfers. The company said transfers are ultimately recorded on public blockchains.

Ondo described Ondo Network as a continuation of its original blockchain plan and stated it may add more operators or introduce a system requiring participants to put up tokens as security in the future.