Ondo Finance Tokenizes BlackRock ETF and Micron Shares — SEC-Aligned
By John Nada·Jul 4, 2026·4 min read
Ondo Finance tokenizes BlackRock ETF and Micron shares using SEC-aligned model, enhancing U.S. regulatory compliance.
Ondo Finance has made a groundbreaking move in the financial technology sector by introducing the first SEC-aligned tokenized stock model. This significant development involves the tokenization of BlackRock's IVV ETF and Micron shares, aiming to seamlessly integrate blockchain-based securities within the existing U.S. regulatory framework.
Ian de Bode, the CEO of Ondo Finance, proudly stated, 'Ondo has built the regulatory, product, and service infrastructure to support all major models within the United States.' This statement underscores the company's commitment to compliance and innovation within the U.S. securities market. The tokenization process is not merely a technological feat but a strategic alignment with the U.S. regulatory framework, demonstrating that blockchain-based securities can be effectively managed within traditional systems.
The decision to tokenize BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) shares is particularly noteworthy, as it marks the first time such securities have been tokenized under the U.S. framework rather than through an offshore structure. This shift reflects a growing trend towards embracing blockchain technology while adhering to domestic regulatory standards.
Central to Ondo's strategy is the Securities and Exchange Commission's (SEC) third-party custodial tokenization model. This model, outlined by the SEC earlier in the year, involves regulated entities holding conventional shares while blockchain tokens represent asset entitlements. This approach contrasts with issuer-sponsored tokenization models, where the issuer of the underlying security plays a more direct role in the tokenization process.
The SEC's model has sparked debates regarding rights equivalency, particularly whether tokenized stocks issued without issuer involvement confer the same rights as traditional shares. This debate came to the forefront when OpenAI highlighted concerns over Robinhood's tokenized offering tied to its shares, emphasizing that the tokens did not represent equity in the company. Ondo's approach provides a potential solution to this issue by ensuring that token holders receive the same governance rights as traditional investors.
Ondo's innovation is further enhanced through its collaboration with Oasis Pro, an SEC-registered transfer agent, and Broadridge, a financial infrastructure provider. Oasis Pro handles the issuance of the tokenized securities on the Ethereum blockchain, while Broadridge extends proxy voting and shareholder communications to token holders. This integration ensures that the underlying securities remain within traditional custody chains, maintaining regulatory compliance while offering token holders the same rights as those holding the securities through conventional brokerage accounts.
The broader financial world is closely watching these developments, as tokenized equities gain momentum across both crypto and traditional finance sectors. Robinhood, for instance, has expanded its own blockchain initiatives, offering tokenized stocks beyond Europe. Similarly, major exchanges such as Nasdaq and the New York Stock Exchange (NYSE) have announced tokenization initiatives, aiming to integrate blockchain technology into regulated securities markets.
Ondo's efforts are part of a larger trend toward the tokenization of traditional assets, a process that has emerged as one of the fastest-growing areas blurring the lines between digital assets and traditional finance. Supporters of tokenization argue that it can modernize capital markets by enabling faster settlement, 24/7 trading, and easier movement of assets across financial platforms. A report by Citi projects that the market for tokenized securities could reach $5.5 trillion by 2030, highlighting the immense potential of this innovative approach.
Despite the promising outlook, the product is not yet available to U.S. investors. However, Ondo emphasizes that this milestone demonstrates the potential to tokenize securities in ways that meet both market and regulatory requirements for U.S. and global investors. This achievement lays a strong foundation for expanding access to on-chain investments for more U.S. investors in the future.
Ondo Finance is already a significant player in the tokenized securities space outside the U.S., with more than $1 billion in tokenized stocks and ETFs spanning over 430 securities. This extensive experience positions Ondo as a formidable force in the market, poised to further disrupt the financial landscape.
This move by Ondo Finance is not just a technological advancement but a strategic alignment with the future of finance. As traditional and digital financial systems continue to converge, the integration of blockchain technology into regulated markets represents a transformative step forward. Ondo Finance, with its robust infrastructure and regulatory alignment, is setting the stage for a new era in the financial industry.