Ondo Brings $1.67B Tokenized Securities Boom to the U.S. With Full Onchain Voting Rights

Key Takeaways:

  • Ondo launched the first third-party tokenized U.S. securities under the SEC’s custodial framework.
  • Shares will be issued to the token holders in exchange for their token, which will entitle them to vote by proxy (through Broadridge).
  • The tokenized securities market has rocketed up 13.6x in one year to $1.67 billion.

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Ondo Finance has reached a major milestone for tokenized securities by introducing the first live third-party tokenized U.S. stocks that operate entirely within the country’s existing regulatory framework. The launch combines blockchain-based ownership with traditional investor protections, bringing tokenized equities one step closer to mainstream adoption.

Ondo Brings U.S. Stocks Fully Onchain

The new offering includes tokenized versions of BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology (MU), issued on Ethereum under a custodial structure that closely follows the U.S. Securities and Exchange Commission’s guidance released earlier this year.

Unlike many previous tokenized stock products that relied on offshore structures or issuer-specific arrangements, Ondo’s model keeps the underlying shares inside the existing U.S. regulated custody system. The original securities remain with traditional custodians and blockchain tokens are minted on a one-to-one basis via Ondo’s SEC-registered transfer agent called Oasis Pro.

The method enables blockchain ownership without altering the underlying securities’ holding or regulation means.

Read More: SEC Eyes Tokenized Stocks Plan That Could Unlock Trillions in Crypto Trading Markets

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Investors Receive Traditional Shareholder Rights

One of the focus points of the launch is governance.

Ondo’s tokenized securities holders will get the same fundamental shareholder benefits of conventional brokerage accounts through a partnership with financial infrastructure provider Broadridge. This includes through proxy voting, regulatory disclosure, issuer communications and corporate notices using Broadridge’s ProxyVote platform.

One of the major concerns with tokenized equities is whether blockchain investors have the same rights as traditional shareholders as far as interactiveness with the company/board.

Ondo CEO Ian De Bode explained that tokenized securities shouldn’t be regarded as forming a regulatory regime, but as being built onto existing U.S. market infrastructure, enhancing access to onchain investment.

Tokenized Equities Continue Rapid Growth

As tokenized securities continue to be one of the fastest-growing sectors in crypto, Ondo has made the announcement.

The company says the onchain tokenized stock market is 13.6 times bigger in the last year to $1.67 billion. The majority of that recent growth is attributed to Ondo’s new Global Markets platform that allows for blockchain-based access to public markets assets, Ondo says.

Read More: BTC Markets Targets Tokenized Asset Trading as $26B RWA Market Sparks New Push

A New Model for Regulated Tokenized Markets

Blockchain Meets Traditional Market Infrastructure

The Ondo system does not replace the financial systems in place, but rather links blockchain with the regulated capital markets in the United States.

In the meantime, transfer restrictions will continue to be enforced by regulated broker-dealers, custodians or transfer agents in compliance with the existing securities rules and will permit investors to have blockchain-native representations of traditional assets.

But innovation must be complemented with protection on the investors’ side, otherwise tokenization can’t scale, says Broadridge. The partnership will deliver institutional-grade confidence through onchain settlement and established governance services, allowing traditional expectations to be upheld.

The post Ondo Brings $1.67B Tokenized Securities Boom to the U.S. With Full Onchain Voting Rights appeared first on CryptoNinjas.

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