Ondo Finance has recently unveiled a groundbreaking model for tokenized U.S. securities, launching blockchain-based versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares. This initiative, announced on July 2, 2026, marks a significant step in bringing traditional financial assets onto the blockchain while adhering strictly to existing U.S. regulatory frameworks.
The newly introduced tokenized securities operate under a third-party custodial model, aligning with guidance provided by the U.S. Securities and Exchange Commission (SEC) in January 2026. This structure ensures that the underlying traditional shares never leave the regulated custody chain, maintaining a robust link to established financial infrastructure. Ondo Finance partnered with Broadridge Financial Solutions Inc., a global leader in financial technology, to integrate world-class governance into this new model.
Under this innovative setup, Oasis Pro TA, LLC, an SEC-registered transfer agent and an indirect wholly owned subsidiary of Ondo Finance Inc., is responsible for issuing the tokenized security entitlements. These tokens are minted on the Ethereum blockchain, with each token backed 1:1 by its corresponding underlying share. This direct backing and the use of a regulated transfer agent are crucial for ensuring the integrity and compliance of the tokenized assets.
Preserving Investor Rights & Institutional Compliance
A key aspect of this launch is the commitment to preserving investor rights. Broadridge plays a pivotal role by enabling comprehensive proxy voting and facilitating essential shareholder communications and regulatory disclosures for token holders through its ProxyVote.com platform. This ensures that individuals holding these tokenized securities enjoy the same protections and rights as those holding traditional shares through U.S. brokerage accounts, a critical factor for institutional adoption and investor confidence.
This development is particularly significant for the Real World Assets (RWAs) sector, demonstrating a viable pathway for tokenizing highly regulated financial instruments within the U.S. market. It represents the first live implementation of a third-party tokenized U.S. securities solution that operates entirely within the existing regulatory perimeter. Previously, tokenized securities often operated outside the U.S. or required issuer-specific sponsorship, limiting their broader applicability and regulatory clarity.
The move by Ondo Finance, in collaboration with Broadridge and Oasis Pro, underscores a growing trend towards integrating blockchain technology with traditional finance in a compliant manner. By leveraging the transparency and efficiency of public blockchains like Ethereum, while meticulously adhering to SEC guidelines, this model could pave the way for wider adoption of tokenized stocks and ETFs. It offers the potential for enhanced liquidity, fractional ownership, and 24/7 accessibility for eligible investors, without compromising on regulatory oversight or investor protections.
This initiative not only expands Ondo's footprint in the tokenized securities space but also sets a precedent for how other traditional assets might be brought on-chain in the future. The successful deployment of this SEC-aligned model could encourage further innovation in the tokenization of real-world assets, bridging the gap between decentralized finance (DeFi) and conventional capital markets. The focus on regulatory compliance from the outset is expected to foster greater trust and accelerate the institutional embrace of blockchain-based financial products.
Original announcement: Ondo Finance