Ondo Finance launched two tokenized U.S. securities for eligible U.S. investors, bringing BlackRock’s iShares Core S&P 500 ETF and Micron shares into a third-party custodial tokenization structure.
The new tokenized securities cover BlackRock’s iShares Core S&P 500 ETF, ticker IVV, and Micron Technology stock, ticker MU. Ondo described the launch as the first production deployment in the U.S. of a third-party custodial tokenized-securities model on a public blockchain.
The structure uses Ethereum for the token layer while the underlying shares remain inside the traditional U.S. regulated custody chain. Ondo’s registered transfer agent mints tokens backed 1:1 by the underlying securities, with the tokens held through regulated custodians.
The launch is separate from Ondo Global Markets, the company’s existing tokenized-stock platform for non-U.S. users. Ondo Global Markets currently states that GM tokens are not offered or sold in the U.S. or to U.S. persons.
SEC Custodial Model Defines The Structure
The SEC’s tokenized securities statement defines a custodial model in which a third party holds an underlying security and issues a crypto asset representing the holder’s entitlement to that security.
Ondo’s IVV and MU products follow that custodial model rather than a synthetic tokenized-stock structure. The products are built around underlying securities held in custody, a registered transfer-agent recordkeeping function and transfer restrictions enforced by participating regulated entities.
The launch does not mean BlackRock or Micron issued the tokens. IVV and MU are the underlying securities, while Ondo’s structure tokenizes entitlements tied to those assets through a third-party model.
Broadridge will support governance functions for the tokens through ProxyVote.com. The integration covers proxy voting, issuer communications and regulatory disclosures for token holders.
U.S. Access Expands Ondo’s Tokenized-Stock Line
Ondo’s U.S. launch follows its wider expansion in tokenized stocks and ETFs outside the United States. The company recently added 24/7 minting and redemption for selected tokenized stocks and ETFs across Ethereum and BNB Chain.
Crypto exchanges are also adding stock-linked products through different structures. Binance recently said its stock-trading product crossed $1 billion in user holdings within 30 days of launch, while Ondo’s new U.S. product uses a tokenized-security entitlement model.
Ondo Global Markets supports more than $1 billion in tokenized securities across more than 430 tokenized stocks and ETFs outside the U.S. The U.S. launch begins with IVV and MU, with Broadridge governance support and Ethereum-based token issuance through the custodial model.
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