Ondo Finance launches SEC-compliant tokenized stocks on Ethereum
In brief
- Ondo Finance tokenized BlackRock's IVV ETF and Micron Technology shares on Ethereum via SEC-registered transfer agent Oasis Pro TA
- Broadridge manages proxy voting, disclosures, and shareholder communications for tokenized securities
- Product unavailable to U.S. investors but aligns with SEC's January custodial tokenization framework
- Citi projects tokenized securities market could reach $5.5 trillion by 2030
SEC Custodial Model in Production
Ondo said it is the first production deployment of the SEC's custodial tokenization model. The launch follows the SEC's January staff statement on tokenized securities, which outlined how a third-party custodial model could comply with existing securities laws.
Under that approach, a regulated intermediary holds conventional shares in custody and issues blockchain-based tokens representing a holder's entitlement to those assets. Under Ondo's implementation, the underlying IVV and Micron shares remain within the traditional U.S. custody chain while Oasis Pro TA mints one-for-one tokenized entitlements on Ethereum.
Infrastructure and Compliance
Financial infrastructure provider Broadridge will handle proxy voting, regulatory disclosures and shareholder communications for the tokenized securities. This arrangement keeps the tokenized offerings within existing market infrastructure rather than creating parallel systems.
Importantly, the product is not yet available to U.S. investors. The structure suggests a pathway for eventual U.S. rollout once regulatory clarity solidifies.
Market Context
A Citi report projected that tokenized securities could reach a $5.5 trillion market size by 2030. Competitors are moving fast. Robinhood recently rolled out its own blockchain and expanded tokenized stocks beyond Europe. OpenAI said last year it did not authorize Robinhood's tokenized offering tied to its shares and warned the tokens did not represent equity in the company.
Traditional market players are also investing. The DTCC has expanded blockchain-based infrastructure and exchanges including Nasdaq and the NYSE have announced tokenization initiatives. Ondo's move signals that the tokenization of securities is shifting from experiment to regulated deployment.
