Backed Finance vs Ondo Finance: Tokenized Securities Comparison 2026
Backed Finance and Ondo Finance both bring traditional financial instruments on-chain, but they target different asset classes and markets. Backed tokenizes stocks and ETFs, while Ondo focuses on treasury products. This comparison examines their approaches to real-world asset tokenization.
Product Focus
Backed Finance specializes in tokenizing traditional securities. Primarily stocks and ETFs. Products like bIB01 (tokenized short-term treasury ETF) and bCSPX (tokenized S&P 500 ETF) give DeFi users exposure to traditional market assets. Ondo Finance focuses on tokenized treasury products, primarily USDY (yield-bearing stablecoin) and OUSG (tokenized short-term treasury fund). The protocol prioritizes compliance-first access to treasury yields.Product Comparison
Backed Products
- bIB01: Tokenized iShares $ Treasury Bond 0-1yr ETF
- bCSPX: Tokenized iShares Core S&P 500 ETF
- Other bTokens: Various tokenized securities
- Focus: Broad traditional securities exposure
Ondo Products
- USDY: Yield-bearing stablecoin (~5% APY)
- OUSG: Tokenized short-term US government bonds
- Focus: Treasury-focused yield products
- Institutional products: Growing suite
Yield and Returns
Backed Returns
- bIB01: Treasury ETF yields (~4-5%)
- bCSPX: S&P 500 returns (variable, market-dependent)
- bTokens: Track underlying security performance
- Nature: Market returns, not fixed yield
Ondo Returns
- USDY: ~5% APY from treasury yield
- OUSG: Treasury fund returns (~4-5%)
- Nature: Treasury-focused, predictable yields
- Stability: Lower volatility than equity exposure
Backed offers market exposure (stocks/bonds); Ondo focuses on treasury yields.
Structure and Compliance
Backed Structure
- Tokenization: 1:1 backing by underlying securities
- Custody: Securities held by regulated custodian
- Jurisdiction: Swiss-regulated entity
- Compliance: KYC for minting; tokens tradeable after
- Target: European and global markets
Ondo Structure
- Tokenization: Fund structure backed by treasuries
- Custody: Qualified US custodians
- Jurisdiction: US-based compliance framework
- Compliance: KYC required; transfer restrictions for some products
- Target: US accredited and global institutional investors
DeFi Integration
Backed DeFi Presence
- Collateral: Accepted on select lending protocols
- DEX Trading: Available on various DEXs
- Chains: Multiple EVM chains
- Composability: Growing but limited by compliance needs
Ondo DeFi Presence
- Strategic Partnerships: Major protocol integrations
- Multi-chain: Expanding chain presence
- Collateral Use: Growing acceptance
- Composability: Building compliance-wrapped integrations
Both are expanding DeFi presence while navigating securities regulations.
Use Case Comparison
Backed Use Cases
- Equity Exposure: Access S&P 500 or other indices on-chain
- Treasury ETF Access: bIB01 for tokenized treasury exposure
- Portfolio Diversification: Traditional assets in crypto portfolios
- 24/7 Trading: Trade securities outside market hours
Ondo Use Cases
- Treasury Yield: Simple yield-bearing USD exposure
- Institutional Allocation: Compliant treasury exposure
- Collateral: Use USDY/OUSG as DeFi collateral
- Cash Management: Treasury yields for idle capital
Risk Analysis
Backed Risks
- Market Risk: Equity tokens carry market volatility (bCSPX)
- Treasury ETF Risk: Lower for bIB01 (short-term treasuries)
- Regulatory Risk: Securities tokenization faces scrutiny
- Counterparty Risk: Depends on custodian and structure
- Smart Contract Risk: Audited but newer
Ondo Risks
- Treasury Risk: Minimal (US government backing)
- Regulatory Risk: Operating within US compliance framework
- Counterparty Risk: Qualified custodian structure
- Smart Contract Risk: Established, well-audited
Backed equity products carry more market risk; treasury products (both Backed bIB01 and Ondo) have lower risk profiles.
Geographic Access
Backed Access
- Primary Market: Europe and international
- US Access: Generally restricted
- Minting: KYC required
- Trading: More permissive after minting
Ondo Access
- US Market: Accredited investors
- International: Broader access
- KYC: Required for most products
- Transfer: Some restrictions for compliance
Institutional Adoption
Backed Institutional
- European institutional focus
- Traditional finance partnerships
- Building institutional products
- Regulatory-compliant structure
Ondo Institutional
- Strong institutional partnerships
- US institutional market
- Compliance infrastructure
- Growing institutional TVL
Choose Based on Goals
Choose Backed When:
- You want equity market exposure on-chain (bCSPX)
- You're a non-US investor seeking tokenized securities
- You want to trade traditional assets 24/7
- You want diverse traditional asset exposure
- You're comfortable with European regulatory framework
Choose Ondo When:
- You want stable treasury yields
- You need US-compliant treasury exposure
- You prefer yield stability over market returns
- You want established institutional infrastructure
- You're building institutional RWA allocation
Conclusion
Backed Finance offers broader traditional securities exposure, including equities. Best for investors wanting diversified on-chain access to stocks and ETFs. Ondo Finance offers focused treasury exposure with compliance-first approach. Best for investors seeking stable yields and institutional-grade infrastructure.They serve complementary purposes: Backed for market exposure, Ondo for treasury yields.
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