Ondo Finance has accomplished the primary stay onchain deployment of third-party tokenized U.S. securities underneath a construction designed to function inside the current U.S. regulatory framework.
Abstract
- Ondo tokenized BlackRock’s IVV ETF and Micron shares on Ethereum.
- The mannequin retains underlying securities inside regulated U.S. custody rails.
- Ondo’s launch follows rising competitors from Exodus, Robinhood, and Securitize.
In keeping with Ondo Finance, the deployment brings shares of BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Know-how (MU) onto the Ethereum blockchain whereas preserving the underlying securities inside the standard U.S. custody system.
The corporate stated the rollout coincides with July 4, when the US celebrates 250 years of independence, and represents its first stay implementation of this issuance mannequin.
SEC-aligned construction retains conventional custody intact
In contrast to many tokenized inventory choices launched exterior the US, Ondo stated its mannequin follows the third-party custodial framework outlined in a January 2025 employees assertion from the U.S. Securities and Alternate Fee. Below that construction, the underlying IVV and Micron shares stay with regulated custodians as an alternative of transferring onto a blockchain.
Ondo stated its registered switch agent, Oasis Professional, points Ethereum-based tokens backed 1:1 by the underlying shares. Monetary infrastructure firm Broadridge manages shareholder communications, proxy voting, and regulatory disclosures, permitting token holders to obtain the identical shareholder rights as buyers holding the securities via conventional U.S. brokerage accounts.
Discussing the rollout, Ondo Finance CEO Ian De Bode stated the milestone demonstrates the corporate’s method to issuing tokenized securities inside current U.S. regulatory necessities.
“Ondo has built the regulatory, product, and service infrastructure to support all major models within the United States. Today’s milestone shows we can tokenize securities in ways that satisfy both market and regulatory requirements.”
The corporate famous that the product will not be but out there to U.S. buyers and is presently meant for eligible worldwide customers exterior the nation.
Tokenized securities race gathers momentum
The launch comes as regulated tokenized securities proceed to draw funding throughout monetary markets. As beforehand reported by crypto.information, Ondo Finance just lately partnered with Exodus Motion to introduce Exodus Markets, enabling eligible customers in chosen jurisdictions to commerce greater than 200 tokenized shares, exchange-traded funds, and real-world property via the Exodus self-custodial pockets on the Solana blockchain.
Competitors within the sector has additionally intensified following Securitize’s public itemizing on the New York Inventory Alternate underneath the ticker SECZ after its SPAC merger with Cantor Fairness Companions II. Backed by BlackRock and Morgan Stanley, the corporate turned the primary publicly traded tokenization platform.
Questions over shareholder rights have remained a serious concern for tokenized equities. The talk intensified in mid-2025 after OpenAI acknowledged that it had not approved Robinhood’s tokenized product linked to its shares and clarified that the tokens didn’t signify fairness possession within the firm. The incident elevated requires clearer regulatory requirements governing tokenized securities.
Ondo stated its issuance framework addresses these considerations by routing token creation via a registered switch agent whereas preserving the standard custody chain, a construction the corporate believes aligns with current U.S. market necessities.
Business forecasts additionally level to continued enlargement. In its June 2026 report, Citi projected the tokenized securities market may attain about $5.5 trillion by 2030. On the similar time, Robinhood has launched a public blockchain for tokenized shares, the DTCC has expanded its blockchain infrastructure, and each the NYSE and Nasdaq have disclosed tokenization initiatives.
Ondo stated it already manages greater than $1 billion in tokenized shares and ETFs masking over 430 securities exterior the U.S. Individually, Ripple just lately unveiled a lending protocol on the XRP Ledger that permits banks to borrow towards tokenized property, including one other instance of monetary establishments constructing infrastructure round tokenized real-world property.
