Axelar partners with Ondo Finance to launch innovative cross-chain liquidity solution for RWA.

BlockBeats news on November 14th, Web3 interoperability platform Axelar (AXL) and Ondo Finance announced a collaboration to launch a new cross-chain solution called Ondo Bridge. The solution aims to simplify the liquidity of Ondo's issued tokens (such as the interest-bearing stablecoin USDY) across different blockchain networks. Ondo Bridge utilizes a "burn and mint" mechanism, which not only breaks through the limitations of traditional cross-chain technology but also effectively avoids the risks of traditional asset wrapping bridges. USDY is a tokenized note collateralized by short-term US Treasury bills and bank current deposits, with a TVL of 35 million US dollars. Axelar (AXL)'s programmable cross-chain platform will support Ondo in managing the USDY supply on multiple chains, allowing for the tokenized representation of its real-world assets (RWA) to be burned on one chain and minted on another. The initial deployment of this solution will use Squid, a cross-chain liquidity router based on Axelar (AXL), to transfer USDY between several chains including Mantle. It is reported that Axelar (AXL)'s collaboration with Ondo was inspired by its collaboration with Circle to develop "composable USDC". Axelar (AXL) previously integrated Circle's cross-chain transfer protocol (CCTP) and Axelar (AXL)'s general message passing (GMP) technology to promote seamless Web3 user experience. Axelar (AXL) stated that it hopes similar inspiration can drive collaborations with other real-world asset and stablecoin issuers like Ondo to achieve cross-chain composability.