Ondo Finance Adds Proxy Voting for 250-Plus Tokenized Stocks, ETFs

Ondo Finance is expanding investor participation features in tokenized securities as it deepens ties with traditional finance, CoinDesk reported on April 28.

The company has partnered with Broadridge Financial Solutions to offer proxy voting and access to disclosures for more than 250 tokenized stocks and exchange-traded funds.

The feature allows investors to sign in with a crypto wallet, review corporate filings and set voting preferences. It extends some shareholder functions to an on-chain environment, where such rights had previously been available only through brokerage accounts.

Ondo Finance uses a structure in which it votes the underlying shares it holds based on investors' preferences. The tokens themselves do not confer direct shareholder rights, but the arrangement provides an indirect way to participate and is intended to bolster trust and transparency.

Tokenized stocks are blockchain-based instruments tied to stocks and ETFs and have become one of the fastest-growing segments of the crypto market. According to data platform RWA.xyz, the market's total value locked has surpassed $1.1 billion, roughly tripling over the past year. Ondo Finance has issued more than $700 million of tokenized stocks and ETFs through its Global Markets platform.

Broadridge operates large-scale proxy processing infrastructure in traditional financial markets. The partnership extends that system to blockchain-based assets. Ondo Finance said the goal is to combine the portability and decentralized-finance compatibility of on-chain assets with governance functions comparable to those in traditional finance.

The move is being viewed in the industry as an effort to address the absence of voting rights in tokenized securities. It also marks a meaningful step for regulatory compliance and investor protection.