Quick Take
- Ondo on Thursday launched tokenized versions of BlackRocks IVV ETF and Micron stock under the third-party custodial framework described by the SEC in January.
Ondo Finance expanded its U.S. footprint on Thursday with the launch of tokenized versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron (MU) shares under the third-party custodial framework outlined by the SEC in January.
The launch marks the first time a third party has tokenized U.S.-listed securities on a public blockchain while operating within the existing U.S. regulatory and market infrastructure, according to Ondo in a statement, adding that such products previously operated offshore or relied on issuer sponsorship on an individual basis.
In its January guidance on tokenized securities, the Securities and Exchange Commission described a structure in which a third party holds the underlying securities and issues crypto assets representing an investor's entitlement to those holdings. Ondo said its tokenized IVV and Micron products are built around that framework.
Under the model, the underlying shares remain in the conventional U.S. custody chain, while Oasis Pro TA, Ondo's SEC-registered transfer agent subsidiary, mints corresponding tokens backed 1:1 by the securities. The tokens are issued on Ethereum and held by regulated custodians, according to the statement.
Token holders receive the same shareholder rights and protections available through traditional brokerage accounts, including issuer communications and onchain proxy voting through Broadridge's ProxyVote.com platform. Transfer restrictions are enforced by participating broker-dealers, transfer agents, and custodians in line with existing regulatory requirements, Ondo said.
“Today's milestone shows we can tokenize securities in ways that meet both market and regulatory requirements, for U.S. and global investors and provides a strong foundation for our expanding access to onchain investments for more U.S. investors,” Ondo Finance CEO Ian De Bode said.
Ondo focuses on tokenizing real-world assets and institutional financial products. Its Global Markets platform outside the U.S. supports more than $1 billion in tokenized securities spanning more than 430 stocks and ETFs, according to the company.
The firm has continued to expand its tokenized equities offering in recent months. In June, Ondo partnered with Exodus to launch Exodus Markets, a platform that provides eligible users with access to more than 200 tokenized stocks, ETFs, and real-world assets through the Exodus app on Solana.
According to The Block's data, the tokenized equities sector reached a market capitalization of $5.5 billion as of June 8, up roughly 147% from $2.23 billion at the start of the year. The category ranks as the fourth-largest segment within the real-world asset market.