Ondo Finance and Broadridge Launch First Custodial Tokenized Securities Within U.S. Regulatory Framework

Quick Summary

Ondo Finance has launched the first custodial tokenized securities in the U.S. that operate entirely within existing regulatory frameworks. Through a partnership with Broadridge, investors can now trade tokenized versions of BlackRock ETFs and Micron shares on the Ethereum blockchain while retaining full proxy voting rights and legal protections.

How Does Ondo Finance Enable Compliant Tokenized Securities?

Ondo Finance solves the regulatory hurdle of on-chain asset management by utilizing a third-party custodial model recently outlined by the SEC. Instead of moving assets out of traditional systems, the underlying shares of the BlackRock iShares Core S&P 500 (IVV) ETF and Micron (MU) remain within the regulated U.S. custody chain. Ondo’s registered transfer agent then mints 1:1 backed tokens on the Ethereum blockchain.

• Regulatory Alignment: Operates fully within the SEC's January 2026 framework for third-party custodial models.
• Asset Security: Underlying shares never leave the traditional U.S. regulated custody infrastructure.
• Blockchain Efficiency: Tokens are issued on Ethereum, allowing for instant settlement and global accessibility.

What Role Does Broadridge Play in Tokenized Governance?

Broadridge Financial Solutions provides the critical governance infrastructure required to make tokenized assets indistinguishable from traditional holdings in terms of investor rights. By integrating their ProxyVote.com platform, Broadridge ensures that token holders receive regulatory disclosures and can participate in corporate actions just like any other shareholder. This partnership bridges the gap between decentralized finance (DeFi) and institutional-grade corporate governance.

• Proxy Voting: Seamless integration with ProxyVote.com for on-chain governance participation.
• Investor Protection: Provides token holders with the same legal rights as traditional brokerage account holders.
• Scalable Infrastructure: Supports over $15 trillion in daily average trading across traditional and digital ecosystems.

FF NEWS TAKE:

This partnership between Ondo Finance and Broadridge is a watershed moment for custodial tokenized securities. By bringing BlackRock and Micron assets onto the blockchain without bypassing U.S. regulations, they have effectively neutralized the "crypto vs. compliance" debate. This move moves the needle significantly because it proves that institutional-grade tokenization can scale using existing market infrastructure, potentially unlocking trillions in liquidity for the U.S. capital markets.