Ondo Finance retains its tokenized shares anchored to actual shares by by no means letting the underlying inventory go away the standard U.S. custody system.
As an alternative of making an artificial token that simply tracks a inventory’s worth, Ondo’s switch agent mints a blockchain token for each actual share held in regulated custody, at a strict 1:1 ratio. This construction follows a mannequin the SEC outlined in a January 2026 employees assertion, and it’s why Ondo describes its method as custodial slightly than artificial.
What Is Ondo’s Custodial Tokenization Mannequin?
Beneath this mannequin, a regulated third get together holds the precise safety, and a separate registered entity points a crypto asset representing the holder’s declare on that safety. Ondo constructed its model round Oasis Professional, an organization it acquired in October 2025 that got here with an SEC-registered broker-dealer, an SEC-registered various buying and selling system, and an SEC-registered switch agent. That is carried out by the switch agent Oasis Professional TA.
Ondo first utilized this construction on July 2, 2026, tokenizing two securities: BlackRock’s iShares Core S&P 500 ETF (IVV) and shares of chipmaker Micron Know-how (MU). Each tokens have been issued on Ethereum.
How Does The Custody Course of Work?
The mechanics relaxation on maintaining the true share in place slightly than shifting it.
The Position Of Oasis Professional As Switch Agent
When a share is deposited, Oasis Professional TA mints a corresponding token, and the underlying share stays with a regulated custodian slightly than being pooled into an offshore construction. That is completely different from many earlier tokenized-stock merchandise, which operated exterior the U.S. and relied on issuer-by-issuer sponsorship agreements.
Maintaining Shares Inside The DTC System
On July 15, 2026, Ondo launched tokenized inventory representations backed by DTC Tokenized Entitlements, digital twins of securities already held on the Depository Belief Firm (DTC), generated by way of the DTCC Tokenization Service.
The primary two belongings have been Circle inventory and the SPDR S&P 500 ETF, issued on-chain as CRCLon and SPYon. Ondo connects to the DTC participant community by way of Alpaca Markets, and the underlying shares keep inside DTC custody all through the method. DTCC has mentioned a fuller model of its Tokenization Service is deliberate for October 2026.
Why Does Broadridge Matter For Shareholder Rights?
A token backed 1:1 by an actual share is barely helpful if the holder will get the identical rights as a conventional shareholder. Ondo partnered with Broadridge Monetary Options to shut that hole.
- Token holders obtain proxy voting entry by way of Broadridge’s ProxyVote.com platform
- Shareholder communications and regulatory disclosures are delivered the identical approach they attain brokerage account holders
- The objective, in accordance with Ondo, is parity: the identical protections whether or not shares are held by way of a dealer or represented as a token
How Did FINRA Approval Develop Entry?
Ondo’s custody mannequin initially launched exterior U.S. retail entry. That modified on July 23, 2026, when Oasis Professional Markets, Ondo’s broker-dealer subsidiary, obtained expanded authorizations from FINRA. The approval covers:
Over-the-counter buying and selling of tokenized equities and funds
- Underwritten major choices and personal placements
- Tokenized merchandise tied to imminent IPO securities
- Settlement in both fiat foreign money or permitted stablecoins
This gave U.S. institutional and retail traders a regulated path to the identical tokenized securities that had beforehand solely been out there to eligible non-U.S. individuals by way of Ondo’s offshore platform.
As of late August 2026, Ondo’s tokenized shares platform held roughly $1.0 billion in complete worth locked throughout greater than 260 listed symbols, with cumulative buying and selling quantity above $27 billion since its September 2025 launch.
As of September 10, 2026, the $ONDO token traded close to $0.358, with a circulating market capitalization of about $1.74 billion towards a totally diluted valuation close to $3.8 billion.
Conclusion
Ondo’s custody mannequin anchors tokenized shares to actual shares by maintaining these shares inside the present U.S. custody and clearing system, utilizing a registered switch agent to mint tokens 1:1, and routing shareholder rights by way of Broadridge’s current infrastructure. FINRA’s July 2026 authorization prolonged this construction to U.S. retail and institutional traders, and DTCC’s involvement ties the tokens on to the settlement rails conventional securities already use.
- Report by CoinDesk: Ondo Finance debuts SEC-aligned tokenized inventory mannequin with BlackRock ETF, Micron shares
- Report by Broadridge: Ondo Finance Launches First-Ever Custodial Tokenized Securities within the US
- Report by TheStreet: Ondo Finance clears a significant hurdle for tokenized shares in U.S.
- Report by CoinPaprika: Ondo Finance ($ONDO): Tokenized Treasuries Chief, Full Assessment
- Report by Yahoo Finance: Ondo Shares Quantity Hits $27B, Tokenized Fairness Platform Holds Above $1B
- Report by BeInCrypto: Ondo Hits 1-Month Excessive as DTC Tokenized Entitlements Launch
