Ondo Finance Unveils Tokenized Shares as Collateral Option

Ondo Finance has opened up tokenized shares as collateral for its users. This means that customers can now use assets like SPY and QQA directly as collateral, rather than having to sell them first.

The new model aims to reduce the need for investors to hold separate funds in multiple places at once, which can increase their exposure to risk. By allowing tokenized shares to be used as collateral, Ondo Finance is seeking to improve efficiency within its $ONDO ($0.41 · Live) ecosystem.

Interestingly, Ondo's tokenized share products have already exceeded $1 billion in total value locked (TVL) just eight months after their launch.