Ondo Finance launches tokenized shares of BlackRock ETF and Micron stock in US market

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Ondo Finance launches tokenized shares of BlackRock ETF and Micron stock in US market

Ondo Finance (ONDO) has introduced a tokenized securities service that offers digital versions of the BlackRock iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) stock, marking what the company describes as the first such offering of its kind in the United States. The service operates under a third-party custodial model aligned with guidance issued by the U.S. Securities and Exchange Commission (SEC) in January 2025.

How the tokenized securities work

According to a press release distributed via PR Newswire, Ondo partnered with Broadridge Financial Solutions to provide the custody and settlement infrastructure for the tokenized assets. The structure relies on a third-party custody framework that the SEC outlined earlier this year, which allows for the issuance of digital securities while maintaining compliance with federal securities laws.

Token holders will receive the same legal rights as traditional shareholders, including access to corporate notices, voting rights, and investor protections. These rights are managed through a standard U.S. brokerage account, meaning investors do not need to navigate specialized crypto wallets or decentralized platforms to participate.

Regulatory context and significance

The launch arrives at a time when the SEC has been clarifying its stance on digital asset custody. The January 2025 guidance referenced by Ondo provides a pathway for regulated entities to hold digital securities on behalf of clients using qualified custodians. By aligning with this framework, Ondo aims to bridge the gap between traditional capital markets and blockchain-based tokenization.

The tokenization of major ETFs and individual stocks represents a practical application of blockchain technology in mainstream finance. Rather than creating new synthetic assets, Ondo is effectively wrapping existing SEC-registered securities in a digital format that can be traded or transferred more efficiently.

Market implications for investors

For retail and institutional investors, tokenized securities could offer faster settlement times, reduced operational costs, and greater accessibility. However, the market remains nascent. The SEC has not yet issued comprehensive rules for all types of tokenized assets, and the legal treatment of these instruments may evolve as more issuers enter the space.

Ondo’s decision to start with the BlackRock S&P 500 ETF and Micron stock is strategic. IVV is one of the most widely held ETFs globally, and Micron represents a major U.S. semiconductor company with high trading volume. By tokenizing these liquid, well-known assets, Ondo reduces the risk of illiquidity that has plagued some earlier tokenization projects.

Competitive landscape

Ondo is not the only firm exploring tokenized securities. Competitors include Securitize, which has worked with BlackRock on money market fund tokenization, and Franklin Templeton, which operates its own blockchain-based fund. However, Ondo’s focus on equity ETFs and individual stocks, rather than money market funds or private credit, differentiates its offering.

The partnership with Broadridge, a established financial technology firm handling over $9 trillion in assets annually, adds credibility to the operational side of the service. Broadridge’s involvement suggests that the tokenization infrastructure is designed to meet institutional standards for custody, settlement, and reporting.

Conclusion

Ondo Finance’s launch of tokenized BlackRock ETF and Micron stock shares represents a notable step toward integrating blockchain technology with regulated securities markets. While the offering is limited in scope and the regulatory environment continues to develop, the use of a SEC-compliant custody model and the backing of an established financial infrastructure provider may encourage broader adoption. Investors should monitor how regulators respond and whether similar offerings from other firms emerge in the coming months.

FAQs

Q1: Are tokenized shares the same as owning the actual ETF or stock?
Yes, in terms of economic and legal rights. Token holders receive the same dividends, voting rights, and investor protections as traditional shareholders, held through a U.S. brokerage account.

Q2: Do I need a crypto wallet to buy Ondo’s tokenized securities?
No. The service operates through standard U.S. brokerage accounts, so investors do not need specialized crypto wallets or decentralized exchange accounts.

Q3: Is this offering approved by the SEC?
Ondo states the service is based on a third-party custody model outlined by the SEC in January 2025. The underlying securities (IVV and MU) are already SEC-registered. The tokenization structure itself does not require separate SEC approval but must comply with existing securities laws.

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