Ondo Finance launches LayerZero bridge to Hyperliquid

On May 11, Ondo Finance announced the integration of the LayerZero bridge to transact Ondo Finance tokenized shares on HyperEVM, revealing its focus on the booming tokenized shares sector.

Ondo Finance integrates LayerZero Bridge

In the latest announcement, Ondo Finance revealed that its token shares are now available for transfer BNB chain and Ethereum to Hyperliquid’s HyperEVM using Ondo Bridge, powered by LayerZero.

This integration will allow users to access tokenized stocks and ETFs on Hyperliquid’s HyperEVM, including SPYon, QQQon, NVDAon, TSLAon, GOOGLon, CRCLon, SLVon, NFLXon, BABAon, COPXon, UNGon, PPLTon, and PALLon.

Ondo Finance is a leading company Real World Assets (RWA) A tokenization platform that moves tokenized assets from traditional finance to the decentralized ecosystem.

Hyperliquid is one of the largest decentralized perpetual exchanges Hold a HIP-4 event He recently created a record after he hit $6.2 million of nominal trading volume on the first day.

in Official announcementThe platform stated:Instead of recreating fragmented on-chain liquidity, Ondo token shares and ETFs leverage the depth of traditional stock markets. Pricing is derived from underlying listings on places like the NYSE and NASDAQ, with execution designed to remain consistent and efficient across market conditions.“

These tokenized stocks and ETFs provide the same liquidity as the traditional world to selected traders on Hyperliquid. These cross-chain investment products allow investors to integrate Advanced strategies He loves Hedging the portfolio with capital efficiency. This type of strategy allows traders to mitigate their losses during a downtrend in the financial market.

Although Hyperliquid is not the only protocol for trading Ondo Finance token shares, there are several protocols that have recently integrated the same service, including Felix and Milt. Felix already offers more than 260 stock tokens and exchange-traded funds to its users.

The recent LayerZero exploit raises security concerns

The integration announcement came shortly after a recent security incident involving LayerZero-powered bridge infrastructure, an attack that appears to be linked to North Korea’s Lazarus Group. Kelp DAO suffered a nearly $292 million exploit after security vulnerabilities related to its bridge setup were discovered.

The incident once again highlighted the security risks associated with cross-chain bridges, which continue to be attractive targets for hackers.

The cyberattack on Kelp DAO caused panic in the DeFi world and contributed to broader market losses of more than $13 billion through large withdrawals, falling asset prices, and DeFi instability.

This attack on Kelp DAO created turmoil in the entire cryptocurrency market, as many lending protocols were experiencing massive withdrawals of funds, leading to an imbalance in the lending pool. The DeFi bridge attack also created bad debts in the DeFi market.

Boom in tokenized shares amid new regulatory guidelines

Tokenized stocks and ETFs are similar to traditional company stocks or funds, which are converted into digital tokens through the tokenization process on the blockchain. Although it works in the same way as traditional stocks, it has some different features, such as instant settlement. Demand for these token stocks has grown impressively in the past few months, including stocks and ETFs.

According to on-chain data, the market capitalization of tokenized stocks has already exceeded $1 billion in 2026. Ondo Finance is one of the leading platforms in the tokenized stock sector, currently holding more than $800 million worth of tokenized stocks and controlling more than 60% of the market, according to RWA.xyz data.

(source: rwa.xyz)

In June 2025, Kraken announced the launch of xStocks. This is a premium stock platform that currently offers over 100 featured US stocks and ETFs. At present, the platform handles more than $25 billion in total transaction volume. The platform also plans to expand to over 500 assets by the end of this year.

One of the main factors behind the boom in tokenized stocks is increased regulatory clarity. Earlier this year, the US Securities and Exchange Commission revealed the new Guideline The agency emphasized that tokenized shares and ETFs are securities under current law, and issuing them on the blockchain does not change the rules.

Following this clarification from the SEC, many companies are planning to incorporate tokenized shares. Recently, Nasdaq and the New York Stock Exchange received approvals for pilot programs that allow trading of tokenized versions of common stocks and ETFs, including stocks available in the S&P 500 Index.

Many major financial institutions are also rushing to embrace the concept Codingincluding major names such as BlackRock, Franklin Templeton, JPMorgan, etc. Apart from this, some traditional exchanges are also planning to launch tokenized products.

Some traditional groups oppose the concept of token shares

While many companies plan to incorporate new innovations such as tokenized shares, their critics raise questions about investor protection. Also, these traditional trading organizations say that the token market may lead to liquidity splitting.

SIFMA and other groups have urged regulators to take a careful approach in approving token investment products. SIFMA stated in Official job “which”SIFMA and its members strongly support innovation in securities markets. However, the adoption of tokenized securities markets and their potential benefits depend on ensuring that they are subject to the same basic principles of investor protection and market integrity that have helped make the U.S. securities markets the largest and deepest in the world.

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