Ondo Finance has completed the first live onchain deployment of third-party tokenized U.S. securities under a structure designed to operate within the existing U.S. regulatory framework. The company tokenized BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares onto the Ethereum blockchain while keeping the underlying securities inside the traditional U.S. custody system.
The rollout coincided with July 4, when the U.S. marked 250 years of independence. Ondo called it the first live implementation of its issuance model.
SEC-Aligned Custody: Tokens Backed 1:1 by Regulated Assets
Unlike many tokenized stock offerings launched outside the U.S., Ondo’s model follows the third-party custodial framework outlined in a January 2025 staff statement from the U.S. Securities and Exchange Commission. IVV and Micron shares remain with regulated custodians rather than moving onto a blockchain. Ondo’s registered transfer agent, Oasis Pro, issues Ethereum-based tokens backed 1:1 by the underlying shares. Broadridge handles shareholder communications, proxy voting, and regulatory disclosures, providing token holders with the same rights as traditional brokerage account investors.
“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,” said CEO Ian De Bode.
The product is not yet available to U.S. investors, targeting eligible international users instead.
Tokenized Securities Race Heats Up as Shareholder Rights Debate Intensifies
The launch comes amid rising investment in regulated tokenized securities. Ondo recently partnered with Exodus Movement for Exodus Markets, enabling users in selected jurisdictions to trade over 200 tokenized stocks, ETFs, and real-world assets on Solana. Securitize listed on the NYSE via a SPAC merger, becoming the first publicly traded tokenization platform backed by BlackRock and Morgan Stanley.
Shareholder rights remain a flashpoint. In mid-2025, OpenAI stated it had not authorized Robinhood’s tokenized product linked to its shares and clarified the tokens did not represent equity ownership, amplifying calls for clearer rules. Ondo’s framework routes token creation through a registered transfer agent while preserving the conventional custody chain, aligning with existing U.S. market requirements.
Citi’s June 2026 report projects the tokenized securities market could reach about $5.5 trillion by 2030. Robinhood launched a public blockchain for tokenized stocks, the DTCC expanded its blockchain infrastructure, and both the NYSE and Nasdaq disclosed tokenization initiatives. Ondo manages over $1 billion in tokenized stocks and ETFs covering more than 430 securities outside the U.S. Separately, Ripple unveiled a lending protocol on the XRP Ledger, letting banks borrow against tokenized assets.