Ondo Finance integrates Spout Finance as open interest falls to $200 million

Ondo Finance, a project focused on tokenizing real-world assets (RWAs), has announced an expanded collaboration with Spout Finance to unlock new borrowing options for users of its tokenized stock ecosystem on Solana.

Integration with Spout Finance

The latest integration allows users to borrow USD Coin (USDC) against their holdings of Ondo Stocks without incurring interest fees charged by Spout. By accepting Ondo Stocks as collateral, Spout Finance aims to enable users to access liquidity in a way that was previously limited to clients of established prime brokers and private banks.

According to Ondo Finance’s statement, users are eligible to borrow up to 50% of their collateral’s value, while conversions between tokens and shares are facilitated by Alpaca’s Instant Tokenization Network.

“A new unlock for Ondo Stocks is coming. Spout Finance will support Ondo Stocks as collateral on Solana, enabling USDC loans with no interest charged by Spout, loans up to 50% of collateral value, and token-to-share conversion via Alpaca’s Instant Tokenization Network. What once required access to prime brokers and private banks is now possible onchain.”

This development offers Ondo users an additional avenue for leveraging tokenized equities without selling their assets immediately, deepening the interaction between traditional finance and decentralized finance (DeFi).

Mini dictionary: Ondo Finance is a platform that specializes in issuing and managing tokenized real-world assets, such as equities, on blockchain networks. Spout Finance is a decentralized finance protocol focused on enabling users to borrow against a variety of asset types. Alpaca’s Instant Tokenization Network offers infrastructure for converting traditional assets into digital tokens on-chain.

ONDO Market Action and Key Technical Indicators

Despite adding another use case for tokenized stocks, ONDO’s governance token has struggled in the market. As of the latest reading, ONDO is changing hands at $0.3484, representing a drop of 2.84% over the past session. The token now trades below all major daily exponential moving averages (EMAs).

ONDO’s technical positioning suggests that sellers still control the market trend. The Relative Strength Index (RSI) is recorded at 36.68, which is notably below its short-term signal average of 40.11. This points to weakening momentum and levels approaching oversold territory, although a definitive reversal has not been confirmed.

Nearby, $0.3859 marks the closest significant resistance zone, with further resistance seen at $0.4662. ONDO’s ability to move above these levels would signal the potential for recovery, while further declines are possible if sellers maintain pressure.

Derivatives Activity and Open Interest

Data from CoinGlass indicates a sharp decline in ONDO’s open interest for derivatives. After reaching close to $630 million in late September, current open interest has dropped to around $200 million, reflecting a substantial reduction in outstanding futures contracts.

CoinGlass data, which is compiled from multiple exchanges, shows that liquidation spikes were notable throughout September and October but have diminished in recent weeks. Overall, the drop in open interest aligns with reduced speculative and leveraged trading activity as ONDO’s price corrected.

Trading volumes and open interest have declined sharply over the past month, suggesting that speculative activity is yet to recover as ONDO trades below its main trend indicators.

Potential Impact of Ecosystem Expansion

Ondo’s new partnership with Spout Finance potentially paves the way for greater adoption of on-chain tokenized equities, offering DeFi users new forms of collateralization and liquidity. This reflects a broader industry push for integrating traditional financial assets with decentralized mechanisms on blockchain networks.

However, analysts point out that increased product utility alone may not trigger renewed buying interest in the ONDO token until key technical hurdles are overcome. Whether a price recovery unfolds in the near term will largely depend on a shift in market sentiment and a return of buyers willing to reclaim major resistance levels.

At present, ONDO’s technical indicators continue to caution investors, as the token remains below key EMAs and momentum remains subdued according to the RSI and open interest data.