What to know:
- Ondo Finance enables proxy voting via Broadridge, linking tokenized equities with governance.
- Over 250 tokenized securities now support filings, access, and voting via investor wallets.
- The platform holds shares while applying investor preferences without granting direct rights.
Ondo Finance has introduced a proxy voting feature for tokenized equities, allowing investors to review company filings and submit voting preferences. The update links blockchain-based assets with traditional governance systems through an integration with Broadridge Financial Solutions.
According to a report, the feature uses Broadridge’s ProxyVote system. It supports more than 250 tokenized securities listed on Ondo Finance’s platform. Investors can access disclosures, review proposals, and submit voting preferences directly through their wallets.
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Ondo Finance Retains Shares, Adds Voting Layer
Ondo Finance remains the holder of underlying shares of these tokens. The company also gathers the preferences of the investors and uses them in conducting the votes. This is a structure that does not give the token holders direct shareholder rights.
Matthieu de Vergnes, global head of institutional at Ondo Finance, described the move. According to him, the feature fits the objective of the firm to make traditional financial assets more accessible. He said that it offers on-chain benefits and governance exposure associated with underlying equities.
The tokenized equities market has grown with companies integrating stocks and exchange-traded funds to blockchain networks. RWA.xyz data shows that the segment has more than $1.15 billion in value locked. This number has increased three times over the last year.
Ondo Finance announced over $700 million in tokenized stocks and ETF products on its Global Markets platform. The company provides these instruments to the non-U.S. investors. It claimed to be the largest issuer in this segment.
Ondo Finance Expands Equity Governance
Previously tokenized equity offerings did not have governance. The new system is designed to fill that gap by Ondo Finance. The feature enables investors to show voting preferences even though the shares are not held.
Danielle Gurrieri, senior vice president and head of product management at Broadridge, said the company intends to facilitate both digital and traditional assets when using the same systems. She further mentioned that tokenized markets can only be scaled by auditability, transparency, and compliance.
In the traditional markets, Broadridge handles high volumes of proxy votes. The company has expanded this infrastructure to accommodate blockchain-based assets. Digital tokens are linked to the governance workflows through the integration.
The proxy voting is now offering features in supported securities. On the platform, investors have the right to review filings, evaluate proposals, and present preferences. Ondo Finance uses such inputs to vote underlying shares it owns.
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