Ondo Finance has launched a groundbreaking initiative, introducing tokenized versions of over 100 U.S.-listed stocks and exchange-traded funds (ETFs) on the Ethereum blockchain. This innovative offering, known as Ondo Global Finance, is specifically available to non-U.S. investors, adhering to regulatory constraints that prevent U.S. participation.
According to the announcement from Ondo Finance, these tokenized stocks are fully backed by actual U.S. equities and ETFs held at registered broker-dealers, alongside cash in transit. This structure aims to provide assurance to investors regarding the security and legitimacy of the tokenized assets. However, the blog post detailing the offering requires a VPN for users in the U.S. to access, highlighting its exclusivity.
As part of its ongoing commitment to the tokenization space, Ondo Finance acquired Oasis Pro earlier this year—an entity that holds broker-dealer and transfer agent licenses from U.S. regulators. Although these licenses facilitate the asset acquisition process for backing the tokens, they do not allow U.S. traders to participate in the Ondo Global offerings.
Tokenized assets, which can include stocks, bonds, and even real estate, are increasingly gaining traction among U.S.-based crypto companies. Major crypto exchange Coinbase has expressed a long-standing desire to tokenize stocks, a goal it has recently renewed. Similarly, the trading platform Robinhood made headlines by launching tokenized offerings for private companies like OpenAI and SpaceX.
One significant advantage of Ondo’s tokenized stocks is the ability for international investors to engage in 24/7 trading. This model allows for fractional ownership, enabling investors to purchase smaller portions of assets that may have previously been financially out of reach. Ondo contends that it aims to revolutionize the securities market in a manner akin to how stablecoins have transformed fiat currency transactions.
Looking ahead, Ondo has plans to extend its tokenized asset offerings beyond Ethereum, eyeing expansion into BNB Chain, Solana, and its own dedicated platform, Ondo Chain. The initiative has garnered support from several prominent crypto wallets, including Trust Wallet, OKX Wallet, MEXC, Morpho, Ledger, and Bitget Wallet.
Industry experts view Ondo’s launch of its Global Markets initiative as a pivotal development in the tokenization landscape. Jamie Elkaleh, the chief marketing officer at Bitget, highlighted the significance of the platform in overcoming regulatory, liquidity, and interoperability obstacles that have hampered earlier attempts at tokenized securities. As Ondo Finance continues to pave the way for innovative financial solutions, its offerings may reshape how investors interact with and trade U.S. equities on a global scale.
