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Ondo Finance Partners With Drift for RWA Integration, Will ONDO Price Rally? – Crypto News

Published

2 years ago

June 19, 2024

Dripp

Ondo Finance has partnered with Drift Protocol to allow the integration of real-world assets (RWAs) on the Solana network. This partnership is to boost the trading and capital markets through the use of USDY, a stablecoin, as collateral in the Drift’s marketplace.

Ondo Finance Joins Forces with Drift Protocol

Ondo Finance made the announcement on June 18 through an X post, which was a major milestone in the DeFi space. For the first time, such yieldcoins as USDY will be accepted as collateral in a platform which focuses on the perpetual contracts.

”Ondo is an excellent partner for Drift because this partnership helps us on our way to making a completely on-chain trading platform where people can trade with any asset as collateral” – Cindy Leow, co-founder of Drift Protocol.

The integration will enable Drift users to use USDY for margin trading and borrowing which can improve the trading volume and liquidity on the platform. Furthermore, this move can open up more RWA-based tokens to be used in DeFi, which can further enhance the variety and reliability of collateral that traders can use.

Role of USDY in DeFi Expansion

USDY, which is collateralized by short-term U.S. Treasury bills and providing a 5.30% annual percentage yield, can be considered as the link between traditional finance and DeFi.

This way, Ondo Finance, and Drift Protocol are expanding the uses of RWAs and providing traders with a chance to generate returns on their investments and utilizing them as collateral for trading.

However, USDY is currently not available to the citizens of the United States or within the United States as it has not been registered under the United States Securities Act. This limitation, as a result, may affect the future growth and use of USDY in the global DeFi markets.

ONDO Price Trend

Despite the announcement, Ondo (ONDO) price has not escaped the crypto market sell-off. In the last 24 hours, ONDO price has been bearish with prices swaying between an intra-day high and low of $1.01 and $1.14, respectively.

At press time, ONDO price was exchanging hands at $1.09, a 3.78% decline from the resistance level.

Concurrently, ONDO’s market capitalization declined by 3.67% to $1,512,746,030 while the 24-hour trading volume surged by 37% to $392,144,095. This surge in trading volume points to accumulation as traders take advantage of the price dip to buy in.