Ondo Finance launched tokenized versions of BlackRock’s iShares Core S&P 500 ETF and Micron Technology shares in the United States on Thursday, marking one of the most closely watched attempts to bring publicly traded U.S. securities onto a public blockchain while keeping them inside the country’s regulated market structure.
The new tokens represent BlackRock’s iShares Core S&P 500 ETF, which trades under the ticker IVV, and Micron Technology, which trades under MU. Ondo said the products are issued under a third-party custodial framework described by the Securities and Exchange Commission earlier this year. Under that model, the original securities remain with a regulated independent custodian, while blockchain-based tokens represent the holder’s entitlement to those assets.
The launch is significant because it moves tokenized U.S.-listed securities closer to the existing domestic brokerage and custody system, rather than relying on offshore structures or arrangements that only provide synthetic exposure. Ondo said the underlying shares remain within the traditional U.S. market infrastructure and are mirrored one-to-one on Ethereum.
The move also gives token holders access to shareholder-style rights, including issuer communications and proxy voting. Those governance features will be supported through Broadridge Financial Solutions’ ProxyVote.com platform, a widely used system in traditional securities markets.
For the tokenized asset market, the launch represents a practical test of how public blockchains can be connected to regulated U.S. securities without moving the underlying assets outside established custody channels. It also arrives during a period of rapid growth for tokenized real-world assets, a market that has expanded from early experiments in digital bonds and tokenized Treasuries into stocks, exchange-traded funds, private credit, and other mainstream financial products.
A new test for regulated tokenized securities
Ondo’s structure follows SEC guidance issued in January, which outlined how tokenized securities could operate when the underlying shares are held by an independent custodian. In this arrangement, the custodian maintains the original securities, while a transfer agent or issuer creates blockchain-based tokens that reflect the holder’s rights.
That distinction matters. Many tokenized stock products available outside the United States have been built through offshore entities, contractual exposure models, or issuer-specific sponsorship arrangements. In those cases, token buyers may receive price exposure to a stock or ETF, but they may not hold the same rights as traditional shareholders.
Ondo said its U.S. structure is different because the securities remain in the regulated custody chain. The tokens are designed to track the underlying assets one-to-one, and the company said holders maintain the same rights as traditional shareholders.
Oasis Pro TA, Ondo’s registered transfer agent subsidiary, is responsible for minting the tokens. The assets backing the tokens are held by regulated custodians. Transfer restrictions are handled by registered broker-dealers and custodians to ensure that trading activity remains consistent with U.S. securities rules.
That compliance framework is central to the launch. Tokenized equities have grown quickly in global markets, but U.S. regulators have remained cautious about products that resemble securities but sit outside established rules for ownership, settlement, disclosure, and transfer controls.
By placing the tokens inside a structure already described by the SEC, Ondo is attempting to show that blockchain-based securities can coexist with the U.S. market system rather than compete with it from the outside.
Why IVV and Micron were selected
The choice of BlackRock’s iShares Core S&P 500 ETF gives the launch immediate relevance. IVV is one of the largest and most widely used exchange-traded funds tracking the S&P 500. It offers exposure to large U.S. companies and is commonly used as a core portfolio product because of its broad market coverage and low cost.
A tokenized version of IVV gives market participants access to a blockchain-based representation of an established ETF rather than a niche or experimental asset. That could help Ondo test how demand develops for tokenized versions of familiar securities.
IVV has also attracted attention because it was recently selected by the U.S. Treasury for a new federal child savings program. That connection adds another layer of visibility to the ETF at a time when tokenized market products are seeking broader recognition.
Micron Technology provides a different type of exposure. The company has become one of the standout beneficiaries of demand tied to artificial intelligence infrastructure, particularly high-performance memory chips used in data centers and AI systems. Micron shares have gained about 263% in 2026, according to market data cited in the source material, driven by strong demand for memory products linked to the AI boom.
By pairing IVV with Micron, Ondo is offering both a broad-market ETF and a high-growth technology stock. The combination allows the company to test tokenization across two different asset profiles: a diversified index-linked product and a single-name equity with strong trading interest.
Governance rights move onchain
One of the most notable features of Ondo’s launch is the inclusion of shareholder governance rights. Through Broadridge’s ProxyVote.com platform, token holders can receive official issuer communications and participate in proxy voting.
This addresses a frequent criticism of tokenized equity products. Many existing products provide only economic exposure, meaning holders can benefit from price changes but do not receive the broader rights associated with owning the underlying security. Those rights can include voting on board elections, executive compensation, mergers, and other corporate matters.
Ondo’s integration with Broadridge is designed to bring those functions into the tokenized structure. Broadridge is a major provider of proxy voting and shareholder communication services in traditional markets, making its involvement an important bridge between conventional securities infrastructure and blockchain-based ownership records.
The ability to vote and receive issuer materials may make tokenized securities more attractive to traders who want products that resemble traditional share ownership, rather than derivatives or offshore representations.
Still, the model will likely face close scrutiny. Market participants will watch whether proxy voting works smoothly, how ownership records are reconciled, and whether token holders experience delays or limitations compared with traditional brokerage account holders.
How the custody model works
The core of the structure is simple: the real securities stay with a regulated custodian, while tokens are issued on Ethereum to represent corresponding entitlements.
This approach is meant to avoid one of the biggest concerns in tokenized markets: whether the digital token is truly backed by the asset it claims to represent. If the custodian holds the underlying IVV and MU shares, and if minting and burning are properly controlled, the token should remain tied to the underlying security.
Oasis Pro TA, as the registered transfer agent, plays a key role in maintaining the official record and minting the blockchain-based tokens. Registered broker-dealers and custodians manage transfer restrictions, which helps ensure that the tokens do not move in ways that breach U.S. securities rules.
That means these tokens are not designed to trade freely like many cryptocurrencies. Transfers may be limited to eligible participants or controlled venues, depending on regulatory requirements and the structure used by Ondo and its partners.
This may reduce some of the open-access features that made blockchain assets popular in the first place. But it also makes the products more compatible with U.S. securities law, which can require identity checks, transfer limits, and compliance monitoring.
Ethereum remains the initial blockchain choice
Ondo chose Ethereum for the initial U.S. launch, reinforcing the network’s role as a major venue for tokenized financial assets. Ethereum has long been the dominant public blockchain for decentralized finance, stablecoins, and tokenized real-world assets.
For institutional-grade products, Ethereum offers deep infrastructure, established custody support, broad developer adoption, and compatibility with many compliance and asset-servicing tools. Those advantages have made it a common choice for firms experimenting with tokenized Treasuries, money market funds, private credit, and other financial instruments.
The decision does not necessarily mean Ondo will limit future launches to Ethereum. The company has already used other networks in different markets. In June, Ondo teamed up with Exodus to launch Exodus Markets, a Solana-based platform offering access to more than 200 tokenized equities, ETFs, and other assets for eligible participants.
That earlier move showed Ondo’s willingness to use multiple blockchains depending on the product, geography, and target audience. For the U.S. launch, however, Ethereum appears to be the first testing ground for a regulated domestic structure.
Market participants will now watch whether Ondo expands the same U.S. framework to other blockchains or keeps its most regulated products on Ethereum because of its maturity and institutional adoption.
Tokenized equities gain momentum
The launch comes as tokenized equities have become one of the fastest-growing areas in the broader real-world asset market. Industry data shows the tokenized equities sector reached a market capitalization of $5.5 billion as of June 8, up about 147% from $2.23 billion at the beginning of 2026.
That growth has made tokenized equities the fourth-largest category in the real-world asset market. The segment remains smaller than tokenized U.S. Treasuries and private credit, but it has rapidly gained attention because equities are familiar, liquid, and widely traded.
The broader tokenized real-world asset market has also expanded sharply. Recent industry reports from mid-2026 estimate total onchain value at nearly $32 billion. Tokenized U.S. Treasuries and private credit account for roughly two-thirds of that market, reflecting strong demand for yield-bearing and institutionally familiar products.
Equities, however, may offer a different pathway to adoption. Stocks and ETFs already have global name recognition and active trading communities. Tokenized versions could appeal to traders seeking blockchain settlement, fractional access, extended market functionality, or integration with onchain financial applications.
At the same time, tokenized equities raise more complex regulatory questions than some debt products. Public stocks come with voting rights, transfer rules, dividend treatment, market disclosures, and corporate action requirements. Ondo’s U.S. launch is partly important because it tries to address those issues within an existing regulated structure.
Ondo’s broader strategy
Ondo Finance has built its business around tokenizing institutional-grade and real-world financial assets. Its Global Markets platform outside the United States currently supports more than $1 billion in tokenized securities across more than 430 stocks and exchange-traded funds.
That offshore activity has given the company experience in tokenized equity products before entering the U.S. market with a domestic structure. The new launch appears to be an attempt to bring that model closer to the core U.S. securities system while preserving blockchain-based settlement and recordkeeping.
The partnership with Exodus earlier this year also shows Ondo’s broader strategy of expanding distribution through different platforms and networks. Exodus Markets, built on Solana, opened access to more than 200 tokenized equities, ETFs, and other assets for eligible participants.
Together, these moves position Ondo as one of the more active firms in the race to tokenize traditional securities. The company is competing in a field that includes crypto-native platforms, broker-dealers, asset managers, fintech firms, and infrastructure providers.
The competition is not only about which platform can list the most tokenized assets. It is also about which structure regulators, custodians, broker-dealers, and traders will trust.
What traders will watch next
The immediate question is whether the new U.S.-regulated tokens will develop meaningful liquidity. Tokenized products can be structurally sound but still struggle if trading volume is thin, spreads are wide, or access is limited.
Traders will compare the Ondo tokens with traditional IVV and MU shares, as well as tokenized versions of equities available through non-U.S. platforms. They will examine pricing accuracy, settlement speed, transfer limits, custody arrangements, and whether the tokens can be used in additional onchain financial services.
Market observers will also look at whether Ondo expands beyond IVV and Micron. Future selections could reveal whether the company is prioritizing large ETFs, high-volume stocks, AI-linked names, dividend-paying companies, or other sectors.
The inclusion of IVV suggests broad index products may be a key focus. The inclusion of Micron suggests high-demand technology names are also attractive. A larger product lineup could make the platform more useful, but it would also increase the complexity of corporate actions, voting, dividends, and compliance monitoring.
Another major question is whether other firms will adopt the same custody model. If Ondo’s launch runs smoothly, it could encourage broker-dealers, custodians, asset managers, and transfer agents to explore similar tokenization structures. If operational problems emerge, the industry may move more cautiously.
A bridge between Wall Street and public blockchains
The launch reflects a broader shift in the digital asset industry. After years of emphasis on cryptocurrencies, decentralized finance, and offshore trading venues, many firms are now focused on bringing regulated financial assets onto blockchain infrastructure.
Tokenized Treasuries showed that public blockchains could support mainstream financial products tied to familiar assets. Tokenized private credit demonstrated demand for onchain access to yield-generating instruments. Tokenized equities may be the next major test, but they require closer integration with established market plumbing.
Ondo’s U.S. launch is not a full replacement for traditional stock trading. The tokens remain subject to transfer restrictions and rely on regulated intermediaries. They do not remove the need for custodians, broker-dealers, transfer agents, or compliance systems.
Instead, the product is best understood as a hybrid structure. It uses blockchain as a recordkeeping and transfer layer while keeping the underlying securities within the regulated U.S. custody framework.
That hybrid approach may be less radical than early crypto visions of fully open, intermediary-free markets. But it may also be more realistic for heavily regulated assets such as U.S.-listed stocks and ETFs.
Market impact may build gradually
The launch is unlikely to transform U.S. equity markets overnight. Traditional exchanges, brokers, and custodians remain deeply entrenched, with enormous liquidity and highly efficient settlement systems. Traders already have easy access to IVV and Micron through conventional platforms.
The importance of Ondo’s move lies more in the precedent it sets. It demonstrates a live application of the SEC-described custodial framework for tokenized U.S. securities. It also shows how governance rights, issuer communications, registered transfer agent functions, and regulated custody can be combined with public blockchain infrastructure.
If the model proves durable, it could support a wider range of tokenized U.S. assets. Over time, that could influence how securities are distributed, traded, pledged as collateral, or integrated into digital financial applications.
For now, traders will be watching the basics: liquidity, compliance, redemption mechanics, custody transparency, voting functionality, and how closely the tokens track the underlying ETF and stock.
The launch gives the market a concrete example to evaluate rather than another theoretical proposal. In a sector often driven by speculation, Ondo’s test may provide useful evidence on whether tokenized public securities can operate inside the U.S. regulatory framework while still delivering the benefits of blockchain-based infrastructure.
To deepen your understanding of tokenized U.S. securities, explore our guide on tokenized equities and their on-chain mechanics.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
