Ondo Finance launches Ondo Network as execution layer for onchain trading

Ondo Finance has launched Ondo Network, an offchain execution system now being used by Ondo Perps, effectively replacing the institution-focused layer-1 blockchain Ondo announced in 2025. The company said the network is designed to separate trade execution from settlement, keeping matching, margin, risk management and liquidations in protected offchain environments while final transfers are still recorded on public blockchains. Rather than trying to compete directly with Ethereum or Solana, Ondo is positioning the network as a specialized execution layer for financial markets. It uses Trusted Execution Environments, or hardware-isolated enclaves, to run application logic privately and at speeds closer to centralized exchanges, while a decentralized attestor set verifies approved code and controls split key shares needed for authorization. Ondo said that structure means no single party, including Ondo, can unilaterally alter application behavior. The shift follows client feedback gathered while building Ondo Perps, which Ondo said showed execution rather than settlement was the main bottleneck for institutional trading. The company said ONDO token governance and incentives are unchanged. Ondo Perps will compete with GMX, dYdX, Vertex and Hyperliquid, while the broader regulatory treatment of a model that separates execution from settlement remains an open question.