More than 100 shares and ETFS launch as tokens via ONDO Finance

The traditional financial world is starting to merge more and more with the decentralized financial world. This time, ONDO Finance makes a proverbial contribution in the bag, by launching more than 100 tokens -cast shares and ETFS on the Blockchain of Ethereum.

A decisive moment for crypto

At ONDO Finance they even talk about a “decisive moment” for the industry. According to them, this is the first time of a development that brings traditional financial markets to the blockchain on a large scale.

The logos of various large tech companies can be seen in the announcement of ONDO Finance.

For example, it will soon be possible to buy shares of Tesla, Meta, Apple, Amazon, Nvidia and many other large parties on the blockchain of Ethereum. It is of course especially interesting to see to what extent this can be done cheaper and faster than with traditional trading platforms.

If that is possible, then that would really result in a breakthrough for the decentralized financial world. If that is not the case, then it makes little sense for people to switch from traditional brokers.

Certainly because in theory there are also some extra security dangers involved. With a traditional broker, your shares cannot just be stolen.

Will this make the difference?

These types of applications are theoretically fat. However, the question is whether it will also make the difference for investors in coins such as ONDO Finance and Ethereum.

As a token holder of Ethereum you of course hope that applications such as these ensure that the value of your investment rises. For the time being, however, this does not seem to influence the Ethereum course extremely.

This could, for example, due to an increase in transaction costs. Only then will you get the problem that transactions will become too expensive, and it is not profitable for people to buy shares via a blockchain.

Of the transaction costs, 50 percent are thrown on the virtual stake on the Ethereum blockchain. That is, those tokens disappear from circulation, with which the supply of Ethers shrinks.

For the time being, however, it is still very questionable whether this will happen at all due to this kind of developments.