Ondo Finance has made headlines by launching tokenized representations of BlackRock's iShares Core S&P 500 ETF and Micron Technology shares on the Ethereum blockchain. Each token is minted on a strict one-for-one basis, secured against actual shares held by a traditional custodian, and operates under a framework that has received approval from the SEC.
Currently, it is important to note that US investors cannot purchase these tokenized assets yet, as the offerings are exclusively available to non-US participants.
How Does the Tokenization Process Work?
The mechanism behind these tokenized equities uses a third-party custodial model. Here, real shares are kept with a conventional custodian while an SEC-registered transfer agent, Oasis Pro TA, is responsible for the minting of digital tokens on the Ethereum blockchain. This structure not only digitizes the investment but also ensures that shareholder rights travel along with the token. Token holders can exercise voting rights on proposals and receive important corporate communications, similar to those who hold shares via regular brokerage accounts. The voting process is facilitated by Broadridge’s ProxyVote.com platform.
As of June 2026, Ondo Finance has also introduced round-the-clock minting and redemption capabilities for its tokenized equities, further enhancing liquidity for investors.
What Does This Mean for Ondo Finance and Its Investors?
This is not the first venture for Ondo Finance in the tokenization landscape. The company has previously tokenized assets exceeding $1 billion across over 430 different stocks and ETFs, primarily focusing on international markets. Ondo's CEO, Ian De Bode, has emphasized that the infrastructure put in place aims to support regulatory-compliant tokenization for both international and domestic investors.
After the announcement, the ONDO token experienced a slight increase, maintaining a trading price close to $0.33. This development signifies a crucial step toward mainstream acceptance of tokenized financial products, with potential implications for how retail investors access and manage their investments going forward.