Ondo Finance launched a platform on Thursday enabling tokenized U.S. securities to operate within the existing regulatory framework, tokenizing shares of BlackRock's iShares Core S&P 500 ETF and Micron Technology on the Ethereum blockchain. The platform follows a framework outlined by the U.S. Securities and Exchange Commission in January 2026 for regulated tokenized securities. The initiative reflects efforts to integrate blockchain technology with traditional capital markets while maintaining regulatory safeguards.
Under the structure, the underlying securities remain within the traditional U.S. custody system. Ondo's registered transfer agent issues blockchain-based tokens that are fully backed on a one-to-one basis by the corresponding shares, allowing the assets to remain within established regulatory safeguards while being represented on-chain. According to Ondo Finance, the offering marks what it describes as the first live platform enabling third-party tokenized U.S. securities to operate within the existing U.S. regulatory framework.
Broadridge Partnership Enables Proxy Voting for Token Holders
Ondo Finance has partnered with Broadridge Financial Solutions to provide token holders with shareholder rights typically associated with traditional brokerage accounts. Through Broadridge's ProxyVote.com platform, investors holding the tokenized securities will be able to participate in proxy voting and receive corporate communications and regulatory disclosures linked to the underlying securities.
Doug DeSchutter, President of Broadridge's Investor Communication Solutions business, said investor confidence would be critical to the broader adoption of tokenized securities. DeSchutter said tokenization would achieve wider adoption only if technological innovation was matched by strong investor protections and trust in the underlying market infrastructure.
Ondo Finance Positions Platform Within U.S. Regulatory Framework
Ondo Finance said its structure differs from most tokenized securities by bringing third-party tokenized securities within the existing U.S. regulatory framework without altering the established custody and transfer infrastructure supporting American capital markets. Until now, most tokenized securities have either been issued outside the United States or required direct participation from the issuing company on an individual basis.
By keeping the underlying securities within regulated custody while issuing corresponding blockchain-based representations, the model seeks to preserve existing legal protections while allowing investors to benefit from blockchain-based ownership and settlement capabilities. Ondo Finance Chief Executive Ian De Bode said the launch demonstrates that securities can be tokenized in a manner that satisfies both market and regulatory requirements. De Bode added that the platform establishes a foundation for expanding access to on-chain investments for both U.S. and international investors while maintaining compliance with existing financial regulations.
Oasis Pro TA, LLC, an SEC-registered transfer agent and indirect wholly owned subsidiary of Ondo Finance Inc., issues the tokenized security entitlements in the new model. Ondo Finance noted that such tokenization services are not a regulated activity of Oasis Pro TA, LLC.
FAQ
What did Ondo Finance launch on Thursday?
Ondo Finance launched a platform enabling tokenized U.S. securities to operate within the existing regulatory framework, tokenizing shares of BlackRock's iShares Core S&P 500 ETF and Micron Technology on the Ethereum blockchain.
How does the Broadridge partnership benefit token holders?
Through Broadridge's ProxyVote.com platform, investors holding the tokenized securities can participate in proxy voting and receive corporate communications and regulatory disclosures linked to the underlying securities.
What regulatory framework does the platform follow?
The platform follows a framework outlined by the U.S. Securities and Exchange Commission in January 2026 for regulated tokenized securities, with underlying securities remaining within the traditional U.S. custody system.
