Ondo Global Markets Target $16T Opportunity

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Good Morning. EigenLayer passed $10B in TVL. The total crypto market cap passed $2.5T. WIF… well, it be woofing (ba dum tss).

There’s an argument that things are getting frothy. At the same time, we’re in a new paradigm thanks to the spot Bitcoin ETFs. Trends such as Coinbase App Store rank and Google Search trends haven’t shown that retail is fully back into the market (yet). We shall see what happens this week.

In Today's Email:

• What Matters: Ondo global markets 💱

• Products: Definitive trading platform 📊

• Charts: Solana stablecoin, BTC futures OI 📈

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WHAT MATTERS

Ondo Global Markets

State of play: Ondo recently unveiled Ondo Global Markets (GM), a platform designed to integrate all publicly traded securities onto the blockchain, providing direct access to the liquidity of traditional securities exchanges.

• Ondo GM offers direct access to traditional securities markets for on-chain investors and developers, featuring a broker-dealer that handles trading, clearing, and settlement.

• The platform supports client orders through APIs, web apps, smart contracts, and token transfers, with blockchain tokens used for transaction permissions, similar to API keys.

• Ondo GM will use public blockchain tokens not as separate financial assets but as a system for conveying trade and settlement instructions to regulated broker-dealers and custodians.

• Ondo GM introduces "Directive Tokenization," where blockchain tokens facilitate trade and settlement instructions instead of representing financial assets.

• The "Directive Tokenization" model streamlines asset transfers and settlements through smart contracts, enhancing efficiency and liquidity without creating separate markets for tokenized assets.

What’s next: It remains to be seen how successful Ondo GM will be as it will still require some form of KYC during the issuance process, making the product akin to a CeDeFi protocol.

Our take: RWA’s primary challenge is finding onchain liquidity. A semi-centralized solution that advances liquidity is a good first step.

For builders and investors: Ondo Global Markets’ success should mean that more capital will stay onchain as wealthy crypto market participants can now tap into other markets without selling or cashing out to FIAT.

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PRODUCTS OF THE WEEK

Definitive, an Advanced DeFi Trading Platform

Definitive, created by the team behind Coinbase Prime's trading engine, offers a powerful on-chain trading platform for DeFi users, supporting advanced trade types across multiple EVM chains.

Last month, Definitive launched Advanced Trading, here are the features update:

• TWAP Orders (Time-Weighted Average Price). TWAP orders spread out large trades to reduce market impact, ideal for discreet transactions across any assets, with detailed transaction reports for review.

• Limit Orders Between Any Assets. Definitive allows traders to set up Limit orders for any token pair, executing the trade when the set limit price is reached.

• Smart Slippage. Definitive's Smart Slippage finds the best slippage setting to ensure trades succeed without falling prey to MEV bots or wasting gas on failed transactions, streamlining the trading process.

• Smart(er) Order Routing. Definitive's Smart Order Router optimizes trade pricing by scanning all on-chain venues, prioritizing reliable and fair platforms. It dynamically updates routing for a seamless trading experience.

• Profit & Loss and Activity Tracking. Definitive provides top-tier reporting on order fills, position performance, and trading history, significantly improving user insight into their investments.

• “Gas-Less” Trading UX. Definitive streamlines trading by handling gas fees, deducting them from trade outcomes for a smooth, "gas-less" experience.

• Private Order Flow. Definitive processes orders privately off-chain and executes them on-chain only when conditions are met, without broadcasting intentions or engaging in payment for order flow, ensuring privacy and integrity.

Other cool products:

• SUPER, a new crypto wallet.

• MoneyBridge, an on-ramp platform.

• Moonshot.io, a Crypto-Twitter analytic platform.

• Virtoshi, a Bitcoin transaction simulation platform.

• TrueWallet, a smart wallet and infrastructure services provider.

CHARTS OF THE WEEK

Solana Stablecoin Supply Rises 50% to $2.34B

Credit to OurNetwork for the original report.

State of play: Solana's revival has led to a 50% increase in its stablecoin supply to $2.34B, ranking it fifth among major blockchains.

• This growth is attributed to Solana's low transaction costs, fast speeds, and new partnerships with entities like Shopify and Visa.

• A significant portion of Solana's stablecoin supply is held on CEXs (70%), with about 25% in DeFi apps, contrasting with other blockchains where exchanges hold 20-30%.

• Analysis by Artemis shows most stablecoins move between exchanges, with Backpack Exchange being a notable recipient.

Our take: Solana’s DeFi activity has been experiencing a resurgence and USDC continues to become the favorite stablecoin for onchain market participants.

Bitcoin Futures Open Interest (OI) Hits ATH

State of play: Bitcoin OI hits an all-time high of $26 billion, surpassing the prior record of $24 billion from November 2021.

• OI measures the total value of all outstanding BTC futures contracts.

• OI funding reached 109% annualized on February 28th, a level that has not been seen since April 2021.

• Binance and Bybit are leading the charge, with each exchange having more than $5 billion and $3 billion in BTC OI respectively.

Our take: While an ATH OI is a bullish indicator, it also serves as a warning that if funding rates related to the OI become overheated, it could lead to cascading liquidations when the unwinding of positions eventually happens.

QUICK BITES

• EigenLayer’s TVL surpasses $10B.

• Bitcoin ETFs hold ~4% of all bitcoin.

• Bitcoin futures OI hits an all-time high.

• South Korea launches probe on Worldcoin.

• Yuga Labs demos Otherside metaverse game.

• Memecoin mania continues as PEPE, WIF, and others rally.

• US Judge enters default ruling against ex-Coinbase insider.

• BIS issues recommendations for global stablecoin arrangements.

NOTEWORTHY READS & MEME

• Udi Wertheimer’s read on Ordinals.

• 0xBeans’ read on Baseline money mechanism.

• Decrypt’s read on Ethereum’s Dencun upgrade.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.