Ondo Finance introduces a cross-chain solution: real assets are now no longer "stuck" on a single blockchain

One of the biggest weaknesses of the tokenized real-world asset (RWA) sector is liquidity fragmentation across blockchain networks. If an RWA token is issued on Ethereum, users on BNB Chain or other blockchains will face difficulties accessing it. This creates isolated “silos,” reducing capital efficiency and limiting investment opportunities.

To address this issue, Ondo Finance has just launched Ondo Bridge—a dedicated bridge for real-world assets. This tool enables seamless transfer of over 100 different RWA tokens between Ethereum and BNB Chain. It marks a significant milestone, not only for Ondo but for the entire growing decentralized finance industry.

Why is a dedicated bridge for real-world assets needed?

Before Ondo Bridge, RWA products like treasury bonds tokenized as (OUSG), corporate bonds, or digital commodities were mainly “locked” within the ecosystem of the blockchain that issued them. An investor wanting to access these yield-generating opportunities from BNB Chain had to go through centralized exchanges (CEX), creating unnecessary slippage—higher transaction fees, increased latency, and fragmented liquidity.

Ondo Bridge completely changes this landscape:

• Connecting two major ecosystems: Ethereum and BNB Chain are currently the most widely used blockchains. Connecting them unlocks unprecedented flexibility.

• Aggregating liquidity: Instead of splitting, the bridge allows liquidity from both chains to pool into a common source. This improves trading depth, leading to better prices and reduced slippage for users.

• Enabling new investment strategies: DeFi users can now build complex strategies—combining lending, yield farming (yield farming), and RWA investing—without being limited by cross-chain boundaries.

The technology behind: LayerZero as the foundation

Ondo Finance did not build the entire infrastructure from scratch. Instead, they partnered with LayerZero—a leading omnichain interoperability protocol—to ensure maximum security.

Here’s how it works:

1. Lock assets on the source chain

Users send their RWA tokens into a smart contract on the original blockchain (e.g., Ethereum). The tokens are not transferred away but are locked in place.

2. Secure proof transmission

LayerZero uses a network of Oracles and Relayers (lightweight nodes) to transmit proof of this lock to the destination chain (e.g., BNB Chain). This system employs cryptography to ensure data integrity and prevent tampering.

3. Mint corresponding tokens

Once the destination chain verifies the proof, it will mint an equivalent amount of RWA tokens for the user. No intermediary holds the assets—everything is controlled by smart contracts and cryptography.

The main advantage of this architecture is decentralization. Unlike traditional bridges that require users to trust a central entity, Ondo Bridge relies on cryptographic proofs. LayerZero has been trusted by hundreds of DeFi applications, so Ondo Bridge inherits a proven security foundation.

Practical benefits for users and the market

The launch of Ondo Bridge brings fundamental changes:

For investors:

• Instant access to RWA products previously only available on other chains
• No need to use high-fee, complex centralized exchanges
• Ability to participate in multi-chain yield farming strategies, combining RWA tokens with other DeFi assets

For the RWA sector overall:

• Demonstrates infrastructure maturity, ready to support cross-chain finance
• Sets a precedent for other projects to develop similar connectivity solutions
• Shortens the gap between traditional finance and the blockchain world

Challenges to address

Although Ondo Bridge is a significant step forward, it still operates within a challenging environment:

Security risks: While LayerZero has been audited, users must accept certain risks associated with smart contracts. Any bugs could have consequences.

Double gas fees: Cross-chain transactions require paying gas on both networks—source and destination. This can increase transaction costs, especially during network congestion.

Latency: Although LayerZero optimizes speed, cross-chain transactions still take a few minutes to fully confirm, not instant like single-chain transactions.

Legal clarity: Since RWA directly involve real assets and traditional finance, cross-chain operations may attract regulatory scrutiny. KYC/AML compliance and local regulations remain uncertain.

FAQs

Which tokens does Ondo Bridge support?

Currently, the bridge supports over 100 native RWA tokens from the Ondo ecosystem, including key products like OUSG (US Treasury Bonds tokenized). The list is expected to expand over time.

Is it safe to use?

Ondo Bridge is built on LayerZero—a thoroughly audited protocol trusted by hundreds of applications. However, users should understand DeFi risks before starting and try with small amounts first.

How much does it cost?

You need to pay gas fees on both the source and destination blockchains. Additionally, there may be a small protocol fee from Ondo Finance. Total costs depend on network congestion at the time.

How long does a transfer take?

Typically, transactions are confirmed within a few minutes. However, timing can vary depending on network congestion and the gas price (gas price) you select.

Besides Ethereum and BNB Chain, which other blockchains can be supported?

The initial rollout supports only these two chains. However, thanks to LayerZero partnership, future expansion to Arbitrum, Polygon, Avalanche, or other blockchains is entirely possible.

Do I need to complete KYC to use Ondo Bridge?

The protocol itself is permissionless. However, to access underlying RWA tokens on Ondo Finance, you may need to complete KYC, depending on the product type and your jurisdiction.

Conclusion: A milestone for DeFi

Ondo Bridge is not just a product update—it’s a comprehensive infrastructure upgrade for the RWA industry. By removing barriers between Ethereum and BNB Chain, Ondo Finance is democratizing access to global investment opportunities previously limited to institutional investors.

This move accelerates convergence between traditional and decentralized finance, turning complex investment strategies into accessible options for everyone. The bridge is live, and the future of cross-chain RWA has begun.