Ondo Finance Unlocks Over 100 Tokenized US Stocks and ETFs on Ethereum

Ondo Finance and the Ondo Foundation have launched a groundbreaking platform, Ondo Global Markets, offering 24/7 on-chain access to over 100 tokenized U.S. stocks and ETFs. Initially available on the Ethereum blockchain, the initiative aims to provide global investors with seamless access to traditional U.S. securities markets, with plans to expand to BNB Chain and Solana soon. This move signifies a major step in bringing traditional finance assets onto the blockchain for broader accessibility and transferability.

Key Takeaways

• Ondo Finance has launched over 100 tokenized U.S. stocks and ETFs on the Ethereum blockchain.

• The platform, Ondo Global Markets, is accessible to eligible investors in Asia-Pacific, Europe, Africa, and Latin America.

• Plans are in place to expand the offering to over 1,000 tokenized securities by year-end and support for BNB Chain and Solana.

• The tokenized assets are backed by underlying securities held at U.S.-registered broker-dealers and provide exposure to total economic returns.

Expanding Access to Tokenized Securities

Ondo Global Markets enables eligible investors outside the U.S. to mint, redeem, and transfer tokenized U.S. stocks and ETFs. The platform provides exposure to the total economic return of these assets, which are secured by the actual securities held by U.S.-registered broker-dealers. This initiative aims to overcome the limitations of siloed platforms and restricted transferability often seen in current tokenized stock offerings.

Technological Integration and Future Plans

The platform integrates with leading crypto wallets, exchanges, and DeFi protocols, utilizing Chainlink for price data and LayerZero for cross-chain interoperability. Ondo Finance plans to scale its offering to over 1,000 assets by the end of the year and is set to introduce support for BNB Chain and Solana in the near future. The company also highlighted partnerships with entities like 1inch, which has upgraded its Swap API to facilitate access to these tokenized real-world assets.

Market Landscape and Regulatory Considerations

Ondo Finance's launch occurs amidst a growing trend of tokenized equity offerings. Competitors like Kraken (with xStocks), Robinhood, and Gemini have also been expanding their tokenized stock services. While proponents argue that tokenized stocks democratize equity investing, legal experts note that these tokens may not offer the same legal protections or direct claims on company assets as traditional stock ownership. The regulatory landscape for tokenized equities remains a key area of development, with calls for increased oversight from bodies like the SEC.

Broader Impact and Vision

Ondo Finance founder and CEO Nathan Allman stated that Ondo Global Markets aims to do for U.S. securities what stablecoins have done for the U.S. dollar by bringing them on-chain. The company is also involved in broader initiatives, including the launch of its own Layer 1 blockchain, Ondo Chain, and a $250 million investment plan for real-world asset projects with Pantera Capital, signaling a commitment to bridging traditional finance and the digital asset sector.

Sources

• Ondo debuts over 100 tokenized US stocks and ETFs on Ethereum, with BNB Chain and Solana support to follow |The Block, The Block.

• Ondo Finance Launches Tokenized US Stocks on Ethereum, The Defiant.

• Tokenized Equity Product xStocks Launches on Ethereum, Cointelegraph.