Qualified investors outside the United States can now trade tokenized U.S. equities on the Ethereum blockchain, with plans to support additional platforms like BNB Chain and Solana in the near future. Ondo Finance, a blockchain protocol dedicated to tokenizing real-world assets (RWAs), has announced the launch of a new platform known as Ondo Global Markets. This innovative platform will enable non-U.S. investors to access over 100 tokenized U.S. stocks and ETFs on the Ethereum network, with ambitions to expand the list to more than 1,000 by the end of the year.
The aim of Ondo Global Markets is to provide 24/7 access to U.S. equities for qualified investors across regions including Asia-Pacific, Europe, Africa, and Latin America. To participate, users will need to undergo standard customer due diligence processes to mint, redeem, and transfer tokenized shares. Initially, the focus will be on highly liquid stocks such as Apple and Tesla, in addition to popular ETFs from renowned firms like Fidelity and BlackRock. Future plans include the introduction of bonds, international equities, and a wider variety of publicly traded instruments.
Each tokenized share is backed by the underlying U.S. securities, which are held at registered broker-dealers; however, these tokens do not confer rights to the underlying assets. According to Ondo Finance, the decision to prioritize U.S. public equities stems from their status as the most liquid and in-demand markets globally. The spokesman for Ondo highlighted the parallels between tokenized equities and USD-pegged stablecoins, asserting that tokenization of U.S. dollar-denominated assets enhances global accessibility and usability. Notably, tokenized Treasuries have seen a remarkable 7,000% growth in adoption since the start of 2023, showcasing the demand for 24/7 access to such assets.
For its latest initiative, Ondo Global Markets will integrate with various crypto wallets, exchanges, and DeFi protocols, employing Chainlink oracles for accurate pricing data and LayerZero for cross-chain interoperability. While specific timelines for support on BNB Chain and Solana remain undisclosed, Ondo has confirmed that this integration is forthcoming.
In addition, the lending protocol Morpho will utilize select tokenized assets as collateral for borrowing and lending within a dedicated vault managed by Gauntlet. Ondo Finance emphasizes that these tokenized stocks mirror the total-return exposure of their actual counterparts, meaning holders can reap the same economic benefits—including price movements, dividends, and corporate actions—as if they owned the physical assets directly.
With approximately $1.4 billion in total value locked across ten chains, Ondo Finance is positioning itself as a key player in the burgeoning tokenized stock sector. Just recently, crypto exchange Kraken announced a partnership with Backed to expand its tokenized stock product, xStocks, to Ethereum, further intensifying competition in the market. xStocks are already available on three other blockchain networks—Solana, BNB Chain, and Tron—indicating a growing interest in the tokenization of U.S. equities.
