Ondo Finance has officially tokenized BlackRock’s IVV ETF and Micron Technology (MU) shares under a new U.S. custodial model. CEO Ian De Bode announced the initiative on July 2, 2026, marking a shift toward institutional financial products that operate within domestic regulatory frameworks. This launch follows specific third-party custodial guidance issued by the U.S. Securities and Exchange Commission (SEC) in January 2026.
The move comes at a time when the broader market is closely watching native token valuations and utility. For instance, Ondo Finance approaches critical support as sell-side pressure recently intensified. However, this expansion into the U.S. market suggests the firm is prioritizing long-term infrastructure and regulatory alignment over short-term price volatility.
Implementing the SEC third-party custodial framework
The current launch utilizes a structure where underlying securities stay within the conventional U.S. custody chain. Ondo’s SEC-registered transfer agent subsidiary, Oasis Pro TA, mints tokens on the Ethereum blockchain that are backed 1:1 by these holdings. This ensures the digital assets represent a verifiable entitlement to the original shares.
Previous tokenized products often relied on offshore structures or individual issuer sponsorship. According to a statement from Ondo, this is the first time a third party has tokenized U.S.-listed securities on a public ledger while operating inside existing market infrastructure. The SEC’s January guidance paved the way for this model by clarifying how third parties can hold underlying assets for crypto representations.
CEO Ian De Bode noted that this milestone proves securities can be tokenized in ways that satisfy both market and regulatory requirements. He believes it provides a strong foundation for expanding on-chain investment access for U.S. participants. The model essentially bridges the gap between legacy brokerage accounts and decentralized technology.
Preserving shareholder rights through Broadridge partnership
A critical component of the launch is the partnership between Ondo and Broadridge Financial Solutions Inc. (NYSE: BR). Broadridge will provide governance services, ensuring token holders retain the same rights as traditional investors. This includes access to issuer communications and regulatory disclosures.
Investors can participate in on-chain proxy voting via the ProxyVote.com platform. This integration solves a common hurdle in the real-world asset (RWA) space where tokenization often stripped holders of their corporate voting power. Now, holding a tokenized version of Micron stock grants the same governance protections available through a standard brokerage.
Compliance is maintained through transfer restrictions enforced by participating broker-dealers, transfer agents, and custodians. These entities ensure all trades align with existing U.S. regulatory requirements. By keeping the underlying shares in the traditional custody chain, Ondo maintains the integrity of the ownership record.
Record growth for the tokenized equities sector
The demand for these products is supported by the rapid expansion of the tokenized equities sector. Data indicates the segment reached a market capitalization of $5.5 billion as of June 8, 2026. This represents a 147% increase from the $2.23 billion valuation recorded at the start of the year.
The sector now ranks as the fourth-largest segment within the broader real-world asset market. This growth is occurring even as macro warning signs emerge alongside rising Treasury yields. Investors are increasingly seeking the efficiency of blockchain settlement for high-liquidity assets like S&P 500 trackers.
Ondo has already built a substantial international presence through its Global Markets platform. Outside the U.S., the firm supports more than $1 billion in tokenized securities across more than 430 different stocks and ETFs. Bringing this technology into the U.S. under a custodial model is the next step in its growth strategy.
Fees and asset valuation for the IVVon token
The initial U.S. offering features tokenized versions of the BlackRock iShares Core S&P 500 ETF, identified as IVVon. This product carries a unique fee structure with 0% management fees and 0% performance fees. As of July 31, 2025, the product already reported a total asset value of $70,007,503.
Each IVVon token represents 1.0083 shares of the underlying IVV ETF. The underlying fund itself is a massive component of the U.S. financial system, with a total market capitalization of $873.01 billion. This provides institutional-grade liquidity to the tokenized version on the Ethereum network.
This trend of traditional finance merging with digital assets is accelerating across the industry. We have seen similar momentum as VanEck and Grayscale move toward potential new spot product launches. Institutional managers are clearly looking for more efficient ways to distribute classic financial products through blockchain rails.
Strategic positioning for Micron and U.S. markets
The inclusion of Micron Technology in this launch is significant given the company’s recent market performance. Micron reached a U.S. $1 trillion market capitalization on May 26, 2026. It remains one of the “Big Three” computer memory manufacturers globally, providing a high-value asset for Ondo’s tokenization platform.
Ondo’s expansion follows a period of heavy development in the RWA sector. In June, the firm partnered with Exodus to launch a platform providing access to over 200 tokenized assets on the Solana blockchain. However, the new U.S. custodial model specifically targets the domestic regulatory environment on Ethereum.
Looking ahead, the success of this model will depend on continued cooperation between regulated custodians and transfer agents. If the Broadridge integration scales effectively, more U.S.-listed securities may follow this path. For now, the focus remains on ensuring these tokens function seamlessly within the legacy financial ecosystem.