World Liberty Financial (WLFI), with the backing of Donald Trump, has executed a significant move by acquiring 342,000 ONDO tokens.
This purchase coincides with Ondo Finance’s announcement of the upcoming launch of its blockchain, positioning it as a notable player in tokenized assets.
The timing of this transaction alongside the unveiling of this development has prompted curiosity and discussions regarding potential institutional interest in the future growth of Ondo and the broader impact on the tokenized assets sector.
Expansion of World Liberty Financial’s Crypto Portfolio
WLFI, with its association with Donald Trump and family, recently converted $470,000 in USDC to 342,000 ONDO tokens via CoW Protocol. This move follows an earlier acquisition of $245,000 worth of ONDO tokens, indicating a growing interest in this asset.
The subsequent transfer of these tokens to Coinbase Prime suggests that WLFI might be gearing up for secure storage or potential trading activities.
Besides ONDO, WLFI has been diversifying its holdings by acquiring Tron (TRX), Wrapped Bitcoin (WBTC), and Ethereum (ETH), thereby strengthening its position in the blockchain-based financial market.
Introduction of Ondo Chain by Ondo Finance
The investment in ONDO occurs simultaneously with Ondo Finance’s pivotal announcement regarding the launch of Ondo Chain on February 6th. This innovative blockchain solution aims to facilitate the seamless integration of tokenized assets into the DeFi domain for institutions.
Ondo Chain will serve as the foundation for Ondo Global Markets, providing on-chain accessibility to conventional assets like US stocks, bonds, and ETFs.
In regard to the launch, Nathan Allman, the CEO of Ondo Finance, expressed, “Financial markets are overdue for an upgrade…We’re setting up an ecosystem that merges the finest features of traditional finance with blockchain technology.”
By addressing crucial issues in tokenized securities such as high transaction costs, liquidity fragmentation, and regulatory compliance, Ondo Chain stands out. It combines elements from both public and permissioned blockchains, providing the openness of public blockchains while ensuring adherence to regulations through permissioned validators.
As a result, prominent financial institutions like Franklin Templeton and Wellington Management are already engaged in collaborations with Ondo to shape the platform’s evolution.
ONDO: Significant Levels to Monitor
The daily ONDO/USDT chart indicates a consolidation phase post a substantial rally in December 2024.
The Relative Strength Index (RSI) is hovering close to the neutral 50 mark, suggesting a state of indecision among traders. On-Balance Volume (OBV) signals consistent accumulation, hinting at an underlying bullish sentiment.
Crucial resistance is positioned at $1.50, standing as a psychological and structural obstacle. A firm close above this threshold could pave the way for a retest of the December peak around $1.70.
The price showed a rebound from the $1.20 support level, aligning with recent bounces and the lower consolidation range.
A breach of this level could signify further downside movement toward $1.00.