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Ondo Finance token price surged hard this week as altcoins continued recovering. The ONDO token surged to a high of $1.0, its highest point on record. It has soared by over 1000% from its lowest point this year, giving it a market cap of over $1.3 billion.

Similarly, Reserve Rights Token (RSR) has pumped to $0.0086, 445% from its lowest level in 2023. Its market cap has jumped to over $51 million.

Reserve Rights vs Ondo

ONDO vs Reserve Rights Token

Blackrock and tokenization

Ondo Finance and Reserve Rights Token have jumped sharply this year, helped by the ongoing tokenization trend.

Tokenization is the process where companies or individuals transform assets into tokens, making them easier to move and trade. 

Analysts believe that tokenization is one of the most important use cases of the blockchain technology. One can easily transform a Real World Asset (RWA) like real estate and vehicle and then unlock its value.

Many large companies have embraced the tokenization technology. In 2023, JP Morgan unveiled its platform, helping move funds between Barclays and Blackrock. Other companies like ANZ Bank and London Stock Exchange (LSE) have moved to the industry.

The most recent entrant to the tokenization industry is Blackrock, the biggest asset manager in the world with over $10 trillion in assets. The company is working to tokenize these assets through a partnership with Securitize.

This is a big move because of the role that Blackrock plays in the financial services industry. It is the biggest owner of companies, meaning that many corporates follow its lead.

Most recently, Blackrock helped to lead the charge in the Bitcoin ETF space. Today, its iShares Bitcoin Trust (IBIT) has become a juggernaut with over $15 billion in assets. 

Ondo Finance and Reserve Rights surge

Therefore, investors have bought some of the top tokenization cryptocurrencies. Ondo Finance is a company backed by Founders Fund and Coinbase. It is in the tokenization industry, where it provides investment solutions to people from around the world.

Its current products are US Dollar Yield (USDY), which has over $104.2 million in assets. The token gives an annual APY of 5.10%. It also has the US Treasuries (OUSG) with $94 million in assets and an APY of 4.96%. US Money Markets (OMMF) is expected to launch soon and will offer a 4.73% return.

These tokens are better than traditional stablecoins like Tether and USD Coin. Tether and USDC make money by investing funds in safe government bonds. They keep these profits, meaning that long-term holders lose value to inflation. Ondo is solving this problem by giving out returns that are above inflation.

Reserve Rights is another player in the tokenization industry. The network lets users create RTokens, which are stable asset-backed currencies independent of fiat money. Its tokens are overcollateralized, which helps to ensure safety. The most recent data shows that Reserve Rights has added over $86 million in assets.

By Crispus Kanyaru

With a keen eye for market trends and a knack for translating complex financial concepts into engaging narratives, Crispus has established himself as a trusted voice in the world of finance. His work has graced the pages of esteemed publications like Benzinga, Forbes, Invezz, and Banklesstimes, reaching a diverse audience eager to navigate the ever-evolving financial landscape. Crispus's journey began with a deep curiosity about the forces shaping the global economy. This natural inquisitiveness led them to pursue a degree in finance and CPIA, equipping them with a solid foundation in financial theory and analysis. But Crispus knew that knowledge alone wasn't enough. He craved to bridge the gap between dry data and real-world experiences, to make finance accessible and relatable to everyone.

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