Key Highlights
- Ondo Finance introduced blockchain-based versions of BlackRock’s iShares Core S&P 500 ETF and Micron Technology equity on Ethereum
- First instance of third-party tokenization of U.S. securities on public blockchain infrastructure within SEC regulatory guidelines
- Holders receive complete shareholder privileges, including governance voting through Broadridge’s infrastructure
- Tokenized equity sector expanded 147% in 2026, achieving $5.5 billion total market capitalization
- Ondo’s international platform encompasses over 430 securities with approximately 181,000 distinct participants
Ondo Finance unveiled blockchain-based representations of BlackRock’s iShares Core S&P 500 ETF and Micron Technology stock this Thursday. These offerings operate within the SEC’s third-party custody regulations, initially detailed in January.
This development represents the inaugural third-party tokenization of U.S.-traded securities on public blockchain networks while maintaining compliance with domestic regulatory structures. Prior initiatives either functioned in offshore jurisdictions or demanded direct issuer sponsorship.
The actual securities remain within traditional U.S. custody systems. Ondo’s SEC-registered transfer agent division, Oasis Pro TA, creates digital tokens with one-to-one backing by physical securities. These blockchain tokens are deployed on Ethereum and maintained by licensed custodians.
Understanding the Custodial Structure
Within the SEC’s regulatory model, third-party entities maintain possession of underlying securities while issuing digital tokens that represent investor ownership stakes in those holdings. Broker-dealers, transfer agents, and custodians implement transfer limitations according to established regulations.
Ondo CEO Ian De Bode stated the introduction demonstrates securities can be digitized through methods satisfying both marketplace demands and regulatory standards for domestic and international participants.
Digital token owners obtain identical privileges as conventional equity holders. These benefits encompass issuer notifications and blockchain-based governance voting via Broadridge’s ProxyVote.com infrastructure.
Governance Participation Arrives for Digital Securities
The collaboration with Broadridge represents a crucial component of this announcement. Participants holding more than 250 tokenized securities via Ondo can now engage in proxy voting procedures and review corporate documentation. The implementation employs a Web3-compatible variant of Broadridge’s shareholder communication system, enabling users to verify identity through blockchain wallets.
This development responds to frequent objections regarding tokenized equities — specifically that participants would forfeit governance privileges associated with conventional direct ownership.
Ondo’s Global Markets infrastructure operating beyond U.S. borders already facilitates over $1 billion in digitized securities spanning more than 430 equities and ETFs. In June, the firm collaborated with Exodus to establish Exodus Markets on Solana, providing qualified participants with access to over 200 tokenized equities, ETFs, and tangible assets.
The tokenized equity sector experienced rapid expansion throughout 2026. Market capitalization reached $5.5 billion by June 8, representing approximately 147% growth from $2.23 billion at year commencement. This segment currently ranks as the fourth-largest category within the real-world asset marketplace.
Aggregate tokenized equity valuation attained $1.67 billion with nearly 181,000 distinct participants, based on Ondo’s figures. The sector has expanded almost 14-fold since May 2025.
Rival platforms including Backed Finance are similarly broadening operations, with digitized equities now accessible through multiple cryptocurrency exchanges and blockchain ecosystems. A recent Binance analysis revealed tokenized tangible assets increased nearly 600% throughout the previous year.
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