Key Highlights
- Ondo Finance introduced blockchain-based representations of BlackRock’s iShares Core S&P 500 ETF and Micron Technology equity on Ethereum’s network
- This represents the inaugural instance of third-party tokenization of American-listed securities on public blockchain infrastructure within SEC regulatory parameters
- Investors holding these tokens receive complete shareholder privileges, including voting rights through Broadridge’s digital platform
- The tokenized stock sector experienced 147% expansion in 2026, achieving a $5.5 billion valuation
- Ondo’s worldwide platform currently encompasses over 430 stocks and ETFs with approximately 181,000 distinct token holders
On Thursday, Ondo Finance unveiled blockchain-based versions of BlackRock’s iShares Core S&P 500 ETF alongside Micron Technology equity. These offerings operate within the Securities and Exchange Commission’s third-party custodial structure, initially introduced in January.
This development represents a groundbreaking moment as the first occasion where an independent entity has tokenized American-listed securities on public blockchain networks while maintaining compliance with current US regulatory architecture. Prior iterations of comparable products either functioned in offshore jurisdictions or necessitated direct issuer sponsorship.
The actual shares remain within the traditional American custody infrastructure. Oasis Pro TA, Ondo’s SEC-registered transfer agent division, creates tokens with 1:1 backing by the underlying securities. These digital assets are deployed on Ethereum and maintained by licensed custodians.
Understanding the Custodial Structure
Within the SEC’s regulatory framework, an independent party maintains custody of the underlying securities while issuing digital tokens that represent investors’ beneficial ownership of those holdings. Transfer limitations are implemented by broker-dealers, transfer agents, and custodians according to established regulatory standards.
Ondo Chief Executive Officer Ian De Bode stated that this launch demonstrates securities can be tokenized in manners that satisfy both marketplace demands and regulatory standards for American and international investors.
Digital token holders enjoy identical privileges as conventional shareholders. This encompasses issuer notifications and blockchain-based proxy voting via Broadridge’s ProxyVote.com infrastructure.
Governance Rights Enabled for Tokenized Securities
The collaboration with Broadridge represents a crucial element of this development. Investors holding more than 250 tokenized securities via Ondo’s platform can now engage in proxy voting procedures and review corporate documentation. The system employs a Web3-enabled iteration of Broadridge’s investor communications infrastructure, permitting users to verify their identity using blockchain wallets.
This capability responds to a prevalent concern regarding tokenized equities — that participants would forfeit governance privileges inherent in conventional direct ownership structures.
Ondo’s Global Markets infrastructure operating beyond American borders already facilitates over $1 billion in tokenized securities spanning more than 430 equities and ETFs. Last June, the organization collaborated with Exodus to establish Exodus Markets on Solana, providing qualified participants access to over 200 tokenized stocks, ETFs, and tangible assets.
The tokenized equity sector experienced rapid expansion throughout 2026. Market capitalization reached $5.5 billion by June 8, representing approximately 147% growth from the $2.23 billion valuation at the year’s commencement. This segment now ranks as the fourth-largest category within the real-world asset marketplace.
Aggregate tokenized stock valuation achieved $1.67 billion with nearly 181,000 distinct holders, based on Ondo’s metrics. The sector has expanded almost 14-fold since May 2025.
Rival platforms including Backed Finance are similarly expanding their offerings, with tokenized equities now accessible across numerous cryptocurrency exchanges and blockchain ecosystems. A recent Binance analysis revealed tokenized real-world assets surged nearly 600% throughout the previous year.
