Ondo Finance has launched tokenized securities based on the existing U.S. securities custody system, with the initial assets being the BlackRock ETF IVV and Micron Technology stock. The company disclosed that the tokens are issued on Ethereum through Oasis Pro TA, a registered transfer agent it acquired last year, and are currently not available to U.S. investors.
The underlying securities are still within the traditional custody chain.
Designed by Ondo, the IVV and Micron shares remain held within the existing U.S. securities custody system by regulated custodians, while Oasis Pro TA mints tokenized equivalents on Ethereum at a 1:1 ratio.
This means that on-chain tokens do not replace existing securities custody arrangements but operate within the current framework of brokers, transfer agents, and custody controls. Ondo describes this structure as the first formal implementation of the SEC custody-based tokenization model.
Broadridge handles voting and shareholder communications.
Financial infrastructure provider Broadridge will handle proxy voting, regulatory disclosures, and shareholder communications. According to the company, investors holding these tokens will receive the same governance rights as holders of traditional brokerage accounts.
This is also one of the key issues in current discussions about tokenized stocks. The market has previously focused on whether on-chain stock tokens can grant holders the same rights as traditional stocks, even if the issuer is not directly involved.
- The initial assets include the BlackRock ETF IVV and Micron stock.
- Tokens are issued on Ethereum and are pegged 1:1 to the underlying securities.
- The product is not currently available to U.S. investors.
The competition in tokenized stocks continues to intensify.
In January this year, SEC staff issued a statement explaining how tokenized securities under a third-party custody model align with existing securities laws. Although such staff statements are not equivalent to formal Commission rules, they typically reflect the regulatory approach to related issues.
Tokenized stocks have recently gained momentum simultaneously within the cryptocurrency industry and traditional financial institutions. Robinhood has recently expanded its tokenized stock offerings, DTCC is advancing blockchain infrastructure, and both Nasdaq and the New York Stock Exchange have previously announced related tokenization plans.
Ondo stated that the company currently offers over 430 tokenized stocks and ETFs in markets outside the U.S., with total product value exceeding $1 billion.
Additional information: Last year, OpenAI publicly stated that it had not authorized Robinhood to launch tokenized products tied to its shares and emphasized that such tokens do not represent equity in the company. This incident has also prompted the market to pay greater attention to the issue of rights ownership in tokenized stocks.