Ondo (ONDO) Tokenizes BlackRock IVV ETF and Micron in US Regulatory First

ONDO News

Ondo Finance has tokenized BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares, marking the first US securities issued under the Securities and Exchange Commission's third-party custodial framework for tokenized assets. The launch, unveiled Thursday, places the underlying equities in traditional US custody while minting crypto tokens on Ethereum that represent holders' rights to those shares. For the Ondo ecosystem and the broader altcoin tokenization sector, the move signals that regulated equity exposure can move onchain without departing from SEC oversight, a distinction Ondo argues is critical for institutional adoption.

Central to the rollout is a partnership with financial infrastructure provider Broadridge, which will handle proxy voting and shareholder communications for the tokenized securities through its Proxyvote.com platform. Holders of more than 250 tokenized securities issued via Ondo will be able to participate in corporate governance and access regulatory filings using blockchain wallets. The integration relies on a Web3-enabled version of Broadridge's investor communications system, letting users authenticate onchain while receiving the governance services traditionally reserved for direct shareholders. Broadridge, listed on the NYSE, said the feature addresses a long-standing gap in blockchain-based equity products.

The token mechanics follow a strict custodial model. Oasis Pro TA, Ondo's registered transfer agent, mints tokens pegged one-to-one to the underlying shares. Those shares remain inside the conventional US custody chain, while the tokens themselves sit on the Ethereum blockchain under a regulated custodian. Participating broker-dealers, transfer agents and custodians enforce transfer restrictions to keep the structure compliant. Token holders are granted the same rights as investors holding equities through a standard brokerage account, including issuer communications and onchain proxy voting, a design intended to satisfy both market participants and regulators simultaneously.

The architecture mirrors the model outlined in the SEC's January 2026 statement on tokenized securities, under which a third party holds the underlying stock in traditional custody while issuing crypto tokens representing holder rights. This differs sharply from earlier tokenization attempts, most of which operated outside the United States or required issuer-by-issuer support. By keeping the underlying equities within the same custodial infrastructure that already serves US securities markets, Ondo positions the product as a regulated on-ramp rather than an offshore workaround, giving investors blockchain-based access without leaving the SEC's supervisory perimeter.

The domestic launch builds on Ondo's Global Markets platform, which has already tokenized more than 430 non-US stocks and ETFs with a combined value exceeding $1 billion. The BlackRock IVV and Micron tokens represent the company's first move into the US domestic market using this custodial approach. Chief Executive Ian De Bode framed the milestone as proof that multiple tokenization models can coexist within US law, arguing that the sector has wrongly treated the choice as a binary between competing frameworks. Ondo says it has built regulatory, product and service infrastructure to support all major models operating in the country.

The rollout arrives as tokenized equities emerge as one of the fastest-growing crypto sectors of 2026. The market first surpassed $1 billion in March and has since expanded to $1.67 billion across nearly 181,000 unique holders, a roughly 14-fold increase since May 2025. Ondo is one of several firms competing for share, alongside Backed Finance, whose xStocks products now trade across multiple exchanges and networks. Broadridge said it now supports all major tokenized-securities structures, including issuer-listed tokens, offshore synthetic tokens and, now, third-party custodial tokens issued inside the United States.

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