TLDR
- Ondo Finance introduced blockchain-based versions of BlackRock’s iShares Core S&P 500 ETF and Micron Technology stock on Ethereum
- First instance of third-party tokenization of US securities on public blockchain infrastructure within SEC custodial regulations
- Investors receive complete shareholder privileges including corporate voting capabilities through Broadridge’s system
- Tokenized stock market expanded 147% during 2026, achieving $5.5 billion valuation
- Ondo’s international offering now encompasses 430+ equities and ETFs with approaching 181,000 distinct participants
On Thursday, Ondo Finance unveiled blockchain-based representations of BlackRock’s iShares Core S&P 500 ETF and Micron Technology equity securities. These offerings operate within the SEC’s third-party custody regulations that were initially established in January.
This development represents a groundbreaking moment where external entities have tokenized publicly-traded American securities on open blockchain networks while maintaining compliance with current US regulatory structures. Earlier comparable initiatives either functioned internationally or needed direct authorization from security issuers.
The actual shares remain within traditional American custody systems. Ondo’s SEC-registered subsidiary for transfer agency services, Oasis Pro TA, creates digital tokens with one-to-one backing by the physical securities. These blockchain representations are deployed on Ethereum and maintained by licensed custodial services.
Understanding the Custodial Structure
Within the SEC’s regulatory framework, an external entity maintains ownership of the base securities while generating cryptocurrency tokens that signify the investor’s claim to those assets. Transfer limitations are managed by broker-dealers, transfer agents, and custodians according to established regulations.
Ondo CEO Ian De Bode stated the introduction demonstrates that securities tokenization can satisfy both marketplace demands and compliance standards for American and international participants.
Investors holding these tokens enjoy identical privileges as conventional equity owners. This encompasses receiving issuer notifications and participating in onchain corporate voting via Broadridge’s ProxyVote.com infrastructure.
Corporate Governance Reaches Blockchain-Based Securities
The collaboration with Broadridge represents a critical component of this launch. Participants holding over 250 different tokenized securities via Ondo can now engage in shareholder voting and view company documentation. The integration utilizes a blockchain-compatible version of Broadridge’s investor communication system, permitting authentication through cryptocurrency wallets.
This development counters a frequent objection regarding tokenized equities — that participants would forfeit governance privileges associated with conventional direct share ownership.
Ondo’s Global Markets infrastructure for international users already facilitates over $1 billion in blockchain-based securities spanning more than 430 equities and ETFs. This past June, the firm collaborated with Exodus to establish Exodus Markets on Solana, providing qualified participants access to over 200 tokenized equities, ETFs, and tangible assets.
The tokenized stock sector experienced rapid expansion throughout 2026. Valuation reached $5.5 billion by June 8, representing approximately 147% growth from the $2.23 billion recorded at year’s beginning. This category now ranks as the fourth-largest division within the real-world asset marketplace.
Aggregate tokenized equity value achieved $1.67 billion with nearly 181,000 distinct participants, based on Ondo’s statistics. The sector has expanded almost 14-fold since May 2025.
Rival platforms like Backed Finance are similarly growing their reach, with blockchain-based stocks now accessible through numerous cryptocurrency exchanges and distributed ledger networks. Recent analysis from Binance indicated tokenized tangible assets increased nearly 600% during the previous year.
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