Ondo shifts from layer-1 blockchain plan to offchain execution network
Ondo Finance has launched Ondo Network, an offchain execution system that moves trading away from public blockchains, marking a shift from its earlier plan for an institution-focused layer-1 chain. The network is already used by Ondo Perps for perpetual futures trading. Instead of validating trades through a decentralized blockchain, Ondo runs the software inside protected enclaves, or Trusted Execution Environments, where operators verify the code and each hold part of the key needed to authorize transfers. Final transfers are still recorded on public blockchains, but Ondo did not disclose the operators or their number. The company says this is a continuation of Ondo Chain, which it described in 2025 as a blockchain for tokenizing traditional financial assets, but now says it does not need to be a blockchain yet. Future plans may include more operators, more onchain recording, and token staking for security.
