What is Ondo Finance?
Ondo Finance, founded in 2021 by Nathan Allman, is a decentralized finance (DeFi) protocol that focuses on bridging traditional finance and blockchain by tokenizing real-world assets (RWAs). It offers users access to institutional-grade financial products, such as tokenized U.S. Treasuries and money market funds, providing a way to integrate these assets into the blockchain ecosystem. Through innovative offerings like OUSG, representing shares in BlackRock's iShares Short Treasury Bond ETF, Ondo Finance aims to democratize access to traditional financial markets while leveraging DeFi infrastructure.
What is ONDO?
The ONDO token is an ERC-20 token on the Ethereum network, and is the governance token of the Ondo ecosystem, empowering holders to participate in the protocol's decision-making processes via the Ondo Decentralized Autonomous Organization (DAO). This includes voting on economic parameters, smart contract upgrades, and broader ecosystem management initiatives. The total supply of ONDO tokens is capped at 10 billion, with allocations supporting ecosystem growth, protocol development, and strategic initiatives. As of early 2025, approximately 1.4 billion tokens were in circulation, with the rest subject to vesting schedules to sustain long-term development.
Risk Statement
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether ONDO can be supported by Wealthsimple's platform, including whether ONDO is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated ONDO based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of ONDO, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created ONDO;
- The supply, demand, maturity, utility and liquidity of ONDO;
- Material technical risks associated with ONDO, including any code defects, security breaches and other threats concerning ONDO and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
- Legal and regulatory risks associated with ONDO, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of ONDO; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether ONDO, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to ONDO may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support ONDO.
Like all other crypto assets, there are some general risks to investing in ONDO. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading ONDO. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 22, 2025
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