TradFi and DeFi: How Fidelity and Schwab's Tokenization Plans Will Complement Ondo Finance

Ondo Finance CEO Ian De Bode says his company's wrapper model will complement traditional financial institutions like Fidelity and Charles Schwab as they enter tokenization.

The wrapper structure exists to solve a DeFi compatibility problem, allowing native stocks to function like crypto assets across DeFi protocols without disrupting existing systems.

Crypto exchanges find Ondo's wrapped tokens straightforward to integrate, using existing accounting and custody infrastructure, keeping markets open 24 hours a day, and settling trades against stablecoins.

Ondo's core product is the wrapper model, issuing instruments that carry full economic exposure to an underlying asset, similar to how a stablecoin works. Ondo actually built for stocks, ETFs, and other traditional assets what stablecoins do for cash.