The purchase of tokenized stocks has always been characterized by the single question of whether the person holds the same shareholder rights. Up until recently, the answer would have been no
The purchase of tokenized stocks has always been characterized by the single question of whether the person holds the same shareholder rights. Up until recently, the answer would have been no.
The Ondo Finance company is changing all of this by partnering with Broadridge to provide their blockchain wallet customers proxy voting and shareholder communications for the shares of over 250 tokenized stocks and ETFs, which give them access to almost the same rights as they would get via traditional brokerage accounts.
The update coincides with Ondo’s first-ever tokenized security offerings in the U.S., starting with BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology (MU).
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Ondo Wants Tokenized Stocks to Behave Like Real Shares
One of the biggest limitations of tokenized equities has been governance. Many products let investors follow the price of a stock but stop short of offering voting rights or company communications.
Ondo is changing that through Broadridge’s investor communications platform. The company’s ProxyVote solution built on Web3 technology enables eligible shareholders to link to their blockchain wallets, submit proxy votes, and get corporate communications similar to how shareholders do when they use regular brokerage accounts.
According to the tweet shared by Ethereum Institutional broadridge is currently working for a large-scale traditional finance ecosystem, serving 200 million plus investors, numerous banks and broker dealers, and all the publicly traded U.S. companies, ETFs, and mutual funds. Ondo brings that same infrastructure to blockchain investments.
ONDO Keeps Real Shares in Traditional Custody
The structure behind these tokenized securities is also different from many earlier models. Ondo’s first U.S. custodial tokens represent BlackRock’s IVV ETF and Micron shares. The actual securities remain inside the existing U.S. custody and clearing system through regulated financial institutions and DTCC infrastructure.
An SEC-registered transfer agent, Oasis Pro Transfer Agent, issues Ethereum-based entitlement tokens backed one-for-one by those underlying shares. That means companies do not need to place their shareholder records directly on a blockchain. Ethereum handles the digital representation of ownership, and the traditional financial system continues holding the actual securities.
Ethereum Institutional noted that this setup removes the need for individual companies to build their own blockchain shareholder systems, making tokenization much easier to expand across additional securities.
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Why Governance Changes the Tokenized Equity Market
This isn’t simply about creating another tokenized asset. Industry estimates place the tokenized equity market at roughly $1.6 billion to $2 billion, with Ondo controlling about half of that market.
Its Global Markets platform has already surpassed $1 billion in total value locked across hundreds of tokenized U.S. stocks and ETFs. Adding shareholder voting makes those tokens much closer to traditional investments than products that only track price movements.
For institutions, governance rights matter. Investors often want more than price exposure. They also want voting rights, company disclosures, and the legal protections that come with owning actual shares. Ondo’s latest rollout brings those features much closer to blockchain investors.
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The ONDO Rollout Is Still Limited
Access is not universal yet. The new custodial securities are initially available to eligible non-U.S. investors through regulated broker-dealers and custodians. Geographic restrictions and compliance requirements remain part of the system.
Competition is also increasing. Robinhood, Securitize, and Binance’s bStocks initiative are all developing tokenized equity platforms under different legal models. The next question is whether those competitors will introduce governance rights similar to Ondo’s or continue focusing only on tokenized price exposure.
For Ethereum, this is another example of public blockchains moving deeper into regulated finance. Tokenized assets are becoming more sophisticated, and shareholder rights may end up being one of the biggest differences between early tokenized stocks and the next generation of on-chain investing.
FAQs
How does Ondo’s new voting system work
Ondo integrates Broadridge’s Web3-enabled ProxyVote platform, allowing eligible holders of tokenized stocks and ETFs to authenticate using blockchain wallets and participate in shareholder voting while receiving official company communications.
What is Broadridge
Broadridge Financial Solutions is a global financial technology company that provides investor communications, proxy voting, and governance services to banks, broker-dealers, asset managers, and publicly listed companies.
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The post Ondo Finance Wants Tokenized Stocks to Feel Like Real Shares – Here’s What’s Changing appeared first on CaptainAltcoin.