Key facts
- Ondo Finance launched tokenized BlackRock iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares on Ethereum.
- Tokenized securities integrate shareholder voting rights and corporate communications via Broadridge.
- The offering follows the SEC's third-party custodial framework for tokenized securities.
- Oasis Pro TA serves as the SEC-registered transfer agent for the issuance.
- The product is not currently available to U.S. investors.
Ondo Finance has launched tokenized versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares on the Ethereum blockchain, incorporating shareholder voting rights and corporate communications. This initiative marks the first deployment under the U.S. Securities and Exchange Commission's (SEC) third-party custodial framework for tokenized securities.
Through a partnership with financial infrastructure provider Broadridge, holders of these tokenized securities will gain access to proxy voting and shareholder documents, mirroring traditional stock ownership rights. Ondo's acquired transfer agent, Oasis Pro TA, manages the token issuance on Ethereum, while the underlying assets remain in traditional custody. The company stated that this model integrates blockchain-based securities into the existing U.S. regulatory and custody framework.
The market for tokenized stocks has seen significant growth, reaching $1.67 billion with nearly 181,000 holders. This expansion is driven by companies seeking to modernize capital markets with benefits like faster settlement and 24/7 trading. While the product is not yet available to U.S. investors, Ondo aims to broaden access to on-chain investments for U.S. individuals in the future.