Ondo Finance Tokenizes Micron Stock, BlackRock’s IVV in Broadridge Partnership

Ondo Finance, a real-world asset platform, has launched custody-based tokenized securities in the US using a third-party issuance model.

The company said July 2 that it partnered with Broadridge Financial Solutions to tokenize BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology shares on the Ethereum blockchain. Ondo described it as the first case of US-listed securities being tokenized through a third-party issuance structure designed to comply with US regulations.

Ondo said the structure follows the custody model for tokenized securities presented by the US Securities and Exchange Commission in January. Under that model, a third party holds the issuer’s securities and issues crypto tokens representing investors’ rights to the underlying assets.

The underlying assets for the products are held under US custody regulations. Ondo’s transfer agent issues tokens backed one-for-one by the shares. The tokens are issued on Ethereum and held by a custodian.

Token holders receive the same rights and protections as investors who hold the shares through US brokerage accounts. Broadridge provides services including proxy voting and issuer communications to token holders.

Chief Executive Officer Ian De Bode said the launch shows securities can be tokenized in the US in a way that meets all regulatory requirements. He added that it would provide a strong foundation for expanding on-chain investment access to more US investors.