Ondo Finance Launches SEC-Compliant Tokenization Model Featuring BlackRock ETF and Micron Shares

Ondo Finance has launched a new tokenization model compliant with U.S. regulations, featuring BlackRock's iShares Core S&P 500 ETF (IVV) and shares of Micron Technology (MU). This initiative marks the first practical application of the SEC's third-party custodial model for tokenized securities, which was introduced earlier this year.

Under this framework, securities are tokenized on the Ethereum blockchain through Oasis Pro TA, a transfer agent acquired by Ondo last year and registered with the SEC. Meanwhile, Broadridge will oversee proxy voting, shareholder communications, and regulatory disclosures, ensuring token holders maintain governance rights equivalent to traditional investors.

Currently, access to these tokenized offerings is limited to investors outside the U.S. Ondo's CEO, Ian De Bode, expressed confidence in the company’s ability to provide tokenization that adheres to regulatory standards, stating, "This milestone demonstrates our ability to tokenize securities in accordance with market and regulatory standards, benefiting both U.S. and global investors."

This launch aligns with the SEC's recent guidance on tokenized securities, which clarifies how third-party custodians can issue blockchain tokens representing traditional asset ownership, contrasting with direct issuer-sponsored models. The ongoing discussion surrounding the legitimacy and rights associated with tokenized shares has become increasingly relevant, especially following concerns about offerings like Robinhood's tokenized stocks.

With over $1 billion in tokenized stocks and ETFs across more than 430 securities, Ondo has positioned itself as a significant player in the tokenization space, which is projected to revolutionize capital markets by enabling faster settlements and broader access to investment opportunities.