Ondo Finance launched tokenized versions of BlackRock's iShares Core S&P 500 ETF and Micron shares on Thursday, expanding its U.S. tokenized securities business under a third-party custodial framework described by the Securities and Exchange Commission in January. The launch represents the first time a third party has tokenized U.S.-listed securities on a public blockchain while operating within existing U.S. regulatory and market infrastructure, according to Ondo. The move comes as the tokenized real-world asset market grows, with asset managers, brokers, and blockchain firms testing ways to bring conventional financial products onto public networks within existing securities rules.
SEC Describes Third-Party Custodial Framework in January Guidance
The SEC's January guidance described a structure in which a third party holds underlying securities and issues crypto assets representing an investor's entitlement to those holdings. Ondo said its tokenized IVV and Micron products are built around that model. Under the structure, underlying shares remain inside the standard U.S. custody chain.
Oasis Pro TA, Ondo's SEC-registered transfer agent subsidiary, mints corresponding tokens backed 1:1 by the securities. The tokens are issued on Ethereum and held by regulated custodians, according to the company. The design keeps the legal and custody layer close to existing market plumbing, with investors receiving blockchain-based representations tied to securities held through regulated infrastructure rather than offshore tokens tracking stock prices.
Ondo Implements 1:1 Token Backing Through Oasis Pro TA
Ondo said token holders receive the same shareholder rights and protections available through traditional brokerage accounts, including issuer communications and onchain proxy voting through Broadridge's ProxyVote.com platform. Transfer restrictions are handled by participating broker-dealers, transfer agents, and custodians in line with existing regulatory requirements.
The choice of BlackRock's IVV ETF and Micron shares gives Ondo 2 different use cases. IVV is a broad-market ETF tied to the S&P 500, while Micron offers a single-stock example in the semiconductor sector. By launching both an ETF and an individual stock, Ondo demonstrates how the same infrastructure may apply across different types of listed securities.
"Today's milestone shows we can tokenize securities in ways that meet both market and regulatory requirements, for U.S. and global investors and provides a strong foundation for our expanding access to onchain investments for more U.S. investors," Ondo Finance CEO Ian De Bode said.
Tokenized Equities Sector Reaches $5.5 Billion Market Cap as of June 8
Ondo's Global Markets platform outside the U.S. supports more than $1 billion in tokenized securities across more than 430 stocks and ETFs, according to Ondo. In June, Ondo partnered with Exodus to launch Exodus Markets, giving eligible users access to more than 200 tokenized stocks, ETFs, and real-world assets through the Exodus app on Solana.
The tokenized equities sector reached a market capitalization of $5.5 billion as of June 8, up approximately 147% from $2.23 billion at the start of the year. That makes tokenized equities the fourth-largest segment within the real-world asset market, according to the source.
FAQ
What did Ondo Finance launch on Thursday?
Ondo Finance launched tokenized versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron shares on Ethereum under a third-party custodial framework described by the SEC in January.
How are Ondo's tokenized securities backed?
The tokens are backed 1:1 by underlying securities held in the standard U.S. custody chain. Oasis Pro TA, Ondo's SEC-registered transfer agent subsidiary, mints tokens corresponding to securities held through regulated infrastructure.
What market capitalization did tokenized equities reach as of June 8?
The tokenized equities sector reached a market capitalization of $5.5 billion as of June 8, up approximately 147% from $2.23 billion at the start of the year.
