DeFi protocol Ondo Finance and venture firm Pantera Capital have partnered to invest $250 million in real-world asset (RWA) tokenization projects through a new fund called Ondo Catalyst. Announced on July 3, 2025, the initiative targets equity stakes and tokens in emerging protocols and infrastructure projects to advance on-chain capital markets. Ondo’s Chief Strategy Officer Ian De Bode described the move as part of an escalating "arms race" in tokenization, citing increased competition from exchanges like Robinhood, Kraken, and Coinbase, which are expanding into tokenized stocks and ETFs.
The fund aligns with regulatory tailwinds, including SEC Chair Paul Atkins' commitment to fostering tokenization innovation. Recent data reveals the RWA market (excluding stablecoins) has surged 380% since 2022, reaching $24 billion by June 2025, driven by private credit and U.S. Treasury products. Ondo, backed by Peter Thiel’s Founders Fund, is a key player with $1.4 billion in tokenized Treasury products (OUSG and USDY) and is developing a dedicated RWA blockchain.