New York, July 2 2026 – In a development that could reshape the infrastructure for digital securities in the United States, Ondo Finance announced today that it has successfully minted blockchain‑based tokens representing two high‑profile U.S. equities: BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology shares (MU). The tokens are issued on the public Ethereum network, yet the entire process remains anchored to the traditional custodial chain that the SEC outlined in its January 2026 statement on tokenized securities.
The effort is backed by a partnership with Broadridge Financial Solutions Inc. (NYSE: BR), which will provide on‑chain proxy voting and the regulatory communications required for token holders to enjoy the same rights as conventional shareholders.
A custodial model that satisfies the SEC
The SEC’s early‑year guidance described a “third‑party custodial model” where an independent entity holds the underlying securities and issues crypto‑style assets that represent a holder’s entitlement. Ondo’s deployment follows that blueprint precisely: the actual shares of IVV and MU never leave the custody framework used for traditional brokerage accounts. Instead, a registered transfer agent—Oasis Pro TA, LLC, an SEC‑registered subsidiary of Ondo—creates a one‑to‑one digital counterpart for each share, records the entitlement on Ethereum, and stores the tokens with regulated custodians.
By keeping the physical securities within the existing U.S. custody infrastructure, the model sidesteps the regulatory gray zones that have hampered many earlier tokenization attempts. Transfer restrictions, anti‑money‑laundering checks, and other compliance controls are enforced by the broker‑dealer, the transfer agent, and the custodian, mirroring the safeguards already applied to paper or electronic shares.
From concept to live product
While several firms have demonstrated proof‑of‑concept tokenizations, Ondo’s launch marks the first production‑grade, third‑party issuance of U.S. listed securities that operates entirely within the regulatory perimeter. The two securities selected for the pilot—IVV, a broadly diversified S&P 500 ETF, and Micron, a high‑visibility semiconductor stock—offer a clear test case for both equity and ETF tokenization.
The tokens are minted on Ethereum, the most widely adopted public blockchain for smart contracts, allowing for transparent, immutable record‑keeping while leveraging the network’s existing developer ecosystem. Broadridge’s ProxyVote.com platform integrates directly with the token ledger, enabling token holders to receive proxy statements, vote on corporate actions, and access mandatory regulatory disclosures—all through the same digital interface used by traditional shareholders.
Strategic implications for the market
The announcement arrives at a moment when U.S. regulators are cautiously opening the door to digital assets, yet remain vigilant about investor protection. By demonstrating a pathway that respects the SEC’s custodial model, Ondo and Broadridge provide a template that could be replicated for a broader set of securities, potentially accelerating the migration of institutional capital onto blockchain‑based infrastructure.
“This milestone shows we can tokenize securities in ways that meet both market and regulatory requirements,” said Ian De Bode, CEO of Ondo Finance. “Our platform now supports a model that delivers on‑chain efficiency without compromising the safeguards that underlie U.S. capital markets.”
From a competitive standpoint, the partnership pits Ondo’s token‑minting engine against a backdrop of other fintech firms pursuing either issuer‑direct tokenization or synthetic token structures that rely on off‑chain collateral. By opting for a third‑party custodial approach, Ondo sidesteps the need for issuers to sponsor each token offering, a hurdle that has slowed adoption for many blockchain‑first projects.
Broadridge’s involvement adds a layer of credibility that many crypto‑focused startups lack. “Tokenization will only scale when it delivers both innovation and investor confidence,” said Doug DeSchutter, President of Broadridge’s Investor Communication Solutions business. “Our role is to ensure that token holders receive the same governance tools—proxy voting, disclosures, and communications—that they expect from any public company.”
Technical underpinnings and operational flow
- Custody of underlying securities – The actual shares of IVV and MU remain in the custody of a U.S.‑registered broker‑dealer, subject to the same segregation and reporting standards as any traditional holding.
- Minting of ERC‑20 tokens – Oasis Pro TA, acting as the transfer agent, issues ERC‑20 tokens on Ethereum, each representing a single share. The smart contract records the token‑to‑share ratio at 1:1 and enforces transfer restrictions in line with SEC rules.
- Regulated custodial storage – Tokens are held by custodians that meet U.S. fiduciary standards, ensuring that the digital assets are not exposed to the same counter‑party risks that have plagued unregulated crypto wallets.
- Proxy voting integration – Through Broadridge’s ProxyVote.com, token holders receive electronic proxy statements, can cast votes, and have those votes recorded on‑chain, creating an auditable trail that aligns with SEC filing requirements.
The architecture demonstrates that a public blockchain can coexist with legacy infrastructure, rather than replace it outright. This hybrid approach may be the most pragmatic route for large institutions that need to balance innovation with compliance.
Market reaction and next steps
Analysts covering digital securities have noted that the launch could serve as a catalyst for broader acceptance of tokenized equities among asset managers and custodians. “If the model scales, we could see a shift in how secondary market liquidity is sourced, with blockchain‑based settlement layers complementing traditional clearing houses,” observed Maya Rao, senior analyst at FinTech Insights.
Both companies indicated that the IVV and Micron tokens are just the first of a planned rollout. Ondo’s Global Markets platform already supports more than $1 billion in tokenized assets across 430+ stocks and ETFs outside the United States. Extending that footprint into the U.S. suggests a roadmap that may eventually include a wider array of ETFs, REITs, and perhaps even corporate bonds, pending further regulatory clarification.
Regulatory outlook
The SEC’s January 2026 statement emphasized that tokenized securities must not dilute the protective framework that governs traditional markets. By adhering to the custodial model, Ondo and Broadridge appear to have pre‑empted potential enforcement actions. Nonetheless, the SEC has signaled that it will continue to evaluate the systemic risk implications of large‑scale tokenization, particularly around market manipulation, data privacy, and cross‑border settlement.
Stakeholders will be watching for any follow‑up guidance that could either broaden the permissible scope of tokenized offerings or impose additional reporting burdens. For now, the partnership’s compliance‑first stance positions it favorably within the regulator’s risk‑averse environment.
Industry context
Tokenization has been a buzzword in fintech circles for several years, yet practical, regulated deployments have been scarce. Most early experiments involved synthetic tokens—crypto assets that track the price of a security without holding the underlying share—raising concerns about counter‑party exposure.
The Ondo‑Broadridge collaboration demonstrates a shift toward “real‑world” tokenization, where each digital unit is directly backed by a legally owned share. This approach could unlock efficiencies in settlement times, fractional ownership, and cross‑border trading, while preserving the auditability and investor protections that have historically defined U.S. securities markets.
Potential challenges
- Scalability of on‑chain voting – While ProxyVote.com can handle current shareholder volumes, a sudden surge in token holder participation could stress the underlying smart contract infrastructure.
- Custodian onboarding – Convincing traditional custodians to adopt blockchain‑compatible storage solutions may require additional technology integration and staff training.
- Market adoption – Institutional investors remain cautious about allocating capital to tokenized assets until liquidity and price discovery mechanisms are proven at scale.
Addressing these hurdles will be essential for the model to transition from a pilot to a mainstream distribution channel.
Bottom line
Ondo Finance’s tokenization of BlackRock’s iShares Core S&P 500 ETF and Micron Technology shares, enabled by Broadridge’s proxy‑voting platform, represents the first fully compliant, third‑party issuance of U.S. listed securities on a public blockchain. By anchoring the tokens to a custodial framework that satisfies the SEC’s January 2026 guidance, the partnership offers a pragmatic blueprint for future digital securities offerings.
If the model gains traction, it could accelerate the integration of blockchain technology into the heart of U.S. capital markets, delivering faster settlement, enhanced transparency, and new avenues for fractional ownership—while keeping the regulatory safeguards that protect investors.
Get in touch with our fintech expert
