Ondo Finance has introduced a tokenized securities structure designed to fit within the existing U.S. securities framework, starting with blockchain-based versions of BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares. The rollout is based on the SEC staff���s January statement on third-party tokenized securities, and Ondo says it is meant to show that onchain representations of traditional assets can function within current regulatory and custody arrangements.
According to the company, the tokenized instruments are issued on Ethereum through Oasis Pro TA, an SEC-registered transfer agent that Ondo acquired last year. Financial infrastructure firm Broadridge is handling proxy voting, regulatory disclosures, and shareholder communications, a setup intended to give token holders governance rights similar to those available through traditional brokerage accounts. Ondo also noted that the product is not yet available to U.S. investors.
A live test of the SEC’s custodial tokenization approach
Ondo describes the launch as the first production deployment of the SEC’s custodial tokenization model. Under this structure, the underlying IVV and Micron shares remain inside the conventional U.S. custody chain and continue to be held by regulated custodians. Oasis Pro TA then mints blockchain-based entitlements on Ethereum on a one-to-one basis. Existing broker-dealer, transfer agent, and custody controls remain in place to enforce transfer restrictions and maintain compliance with securities rules.
CEO Ian De Bode said the company has built the regulatory, product, and service infrastructure needed to support major tokenization models in the United States, arguing that this milestone helps create a foundation for expanding access to onchain investments for both U.S. and global investors.
Tokenized equities are growing, but legal questions remain
Tokenization has become one of the fastest-growing areas linking crypto markets with traditional finance. Advocates argue that tokenized securities could improve settlement speed, enable around-the-clock trading, and make assets easier to move across financial platforms. Citi has projected that the market for tokenized securities could reach $5.5 trillion by 2030.
Even so, debate continues over whether tokenized stocks issued without the direct involvement of the underlying issuer provide the same rights as conventional shares. The SEC’s January staff statement outlined how a third-party custodial model could operate under existing law, but it does not carry the same force as formal guidance approved by the agency’s commissioners. That distinction matters in a market still shaped by disputes over what tokenized claims legally represent. Last year, for example, OpenAI said it had not authorized Robinhood’s tokenized product tied to its shares and warned that the tokens did not represent equity in the company.
Against that backdrop, Ondo’s model attempts to reduce uncertainty by keeping the underlying securities within the traditional custody system while extending shareholder communications and voting through Broadridge’s established investor-services infrastructure. The move also comes as tokenized equities gain traction across both crypto and traditional finance, with Robinhood, DTCC, Nasdaq, and the New York Stock Exchange all pursuing related blockchain-based initiatives. Ondo says that outside the U.S. it already supports more than 430 securities and has surpassed $1 billion in tokenized stocks and ETFs.