Ondo Finance and Pantera Capital are set to invest $250 million in real-world assets (RWAs) through their new Ondo Catalyst fund, reflecting a growing interest in tokenization within the financial industry. Ondo's chief strategy officer, Ian De Bode, noted a competitive surge in the tokenization market, particularly among exchanges targeting tokenized stocks and exchange-traded funds (ETFs). This initiative follows Robinhood's launch of a layer-2 blockchain for trading tokenized US stocks and ETFs in Europe. The RWA market, backed by supportive regulatory developments, has reportedly grown by 380% since 2022, reaching $24 billion. The growth is attributed to private credit and US government debt. Regulatory shifts under the SEC aim to promote blockchain innovation, signaling an evolving landscape for tokenized financial products. Ondo's recent collaborations and the backing by notable investors underline the movement towards on-chain finance.

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