Partnership Details and Product Overview
Ondo Finance has announced a collaboration with NYSE-listed Broadridge Financial Solutions (BR) to launch the first third-party custodied tokenized US securities solution within the existing U.S. regulatory framework. The tokenized assets include BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) common stock. The tokens are issued on the Ethereum blockchain and are 1:1 backed by the underlying securities, which remain within the traditional regulated custody chain in the United States.
Ondo stated that this marks the first time a U.S. listed security has been tokenized by a third party on a public blockchain while fully complying with current U.S. regulatory frameworks and infrastructure requirements. The solution adheres to the third-party custody model described in the U.S. Securities and Exchange Commission (SEC) statement on tokenized securities published in January 2026, providing a repeatable template for future compliant tokenization efforts.
Shareholder Rights and Market Implications
Broadridge will provide token holders with proxy voting, issuer communications, and regulatory disclosure services through its ProxyVote.com platform. This ensures token holders enjoy the same shareholder rights and protections as traditional securities investors, including the ability to vote on material fund or corporate matters.
The collaboration combines the custody and settlement infrastructure of traditional finance with the programmability and transparency of blockchain, enhancing asset liquidity and transaction efficiency without disrupting existing regulatory guardrails. This development is expected to encourage more traditional financial institutions to explore compliant tokenization of securities, potentially ushering in a new infrastructure paradigm for U.S. capital markets.
According to the joint announcement, with the SEC's explicit endorsement of the third-party custody model for tokenized securities, more categories of U.S. securities are likely to be tokenized in a similar manner, further narrowing the gap between traditional finance and decentralized finance.