Openmarkets & Ondo eye tokenised finance in Australia

Openmarkets and Ondo Finance have signed a memorandum of understanding on tokenised finance in Australia, centred on access for eligible Australian investors.

They will explore bringing Ondo's tokenised financial products to the local market and developing new products for Australia. Initial work will focus on possible distribution by Openmarkets of selected Ondo products, subject to regulatory requirements and approvals, and on product development that could include tokenised Australian-listed securities and access to offshore tokenised markets.

The arrangement extends Openmarkets' push into digital assets across its brokerage, clearing, settlement and wealth management businesses. It also gives Ondo a local partner as it seeks to expand the reach of its tokenised products beyond the US.

Openmarkets is a participant on ASX, Cboe and NSX and holds an Australian Financial Services Licence. The group is also registered on AUSTRAC's Virtual Asset Service Provider Register, positions it says provide a base for a move into tokenised products.

Tokenisation is the creation of digital representations of assets on blockchain networks. In financial markets, proponents argue the model could change how investors access, trade and hold assets, while regulators and market operators continue to examine how such products fit within existing rules and infrastructure.

Dan Jowett, Chief Executive Officer of Openmarkets, said the tie-up could support the creation of products for domestic investors.

“We're delighted to collaborate with Ondo, a trusted onchain finance global leader, to bring its world class suite of tokenised products to local investors and explore new tokenised offerings,” Jowett said.

He said tokenisation is already reshaping parts of the local market.

“Tokenisation is already transforming Australia's financial services industry and improving the way local participants access, transact and hold assets. As a licensed broker and fintech with a deep market footprint, Openmarkets is uniquely positioned as an infrastructure provider and distributor of digital products,” Jowett said.

Market push

The deal follows Openmarkets' recent publication of a report on digital assets in Australia. The report argued that Australia has favourable conditions for on-chain capital markets, including regulatory clarity and an emerging AUD stablecoin market, but lacks enough licensed intermediaries across the tokenised value chain.

The Digital Finance Cooperative Research Centre has estimated digital-finance innovation could be worth about AUD $24 billion a year to the Australian economy, according to Openmarkets. The company has framed its latest moves as a response to that gap in market infrastructure.

Forecasts cited by Openmarkets suggest the global market for tokenised assets could reach USD $16 trillion by 2030. While estimates for the sector vary widely, the figure underlines the level of interest among financial groups, blockchain firms and investors in developing token-based versions of conventional financial instruments.

Ondo describes itself as a blockchain technology company focused on tokenising real-world assets and putting financial products onchain. The Australian work under discussion may include tokenised Australian-listed securities as well as channels for local investors to access tokenised markets offshore.

Min Lin, Managing Director of Global Business Development at Ondo Finance, said Australia was a natural target as the company broadens its geographic footprint.

“Australia is a natural next step in Ondo's global expansion. Openmarkets brings deep local market expertise and established financial infrastructure, creating a compelling pathway to explore how Ondo's institutional-grade tokenised products can reach eligible Australian investors. Together, we aim to connect one of the Asia-Pacific region's most sophisticated capital markets with the global onchain economy,” Lin said.

Broader strategy

The Ondo agreement sits alongside another Openmarkets partnership in digital assets. Openmarkets has also teamed up with Redbelly Network, a Layer 1 blockchain developed at the University of Sydney with CSIRO and backed by Boman Group, as it seeks to build links between traditional financial services and decentralised networks.

Openmarkets provides trade execution, clearing and settlement services, options risk management, equity order management applications and wealth management services to financial technology providers, advice professionals and professional traders. Earlier this year, the group entered into a merger and business combination agreement with special purpose acquisition company Lake Superior Acquisition Corp, which would result in the combined business being listed on Nasdaq if completed.

Ondo Stocks, one of the businesses within the Ondo group, operates an issuance and redemption platform for tokenised publicly traded US stocks and ETFs. The platform is aimed at investors outside the US and uses securities-backed tokens designed to provide economic exposure to the underlying assets.

The companies have not disclosed financial terms for the memorandum. The next stage will involve assessing distribution pathways and product structures within Australian regulatory settings.