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Ondo Finance Launches Custodial Tokenized U.S. Securities with Broadridge Proxy Voting

Realistic scene of a user casting a proxy vote for tokenized US securities (IVV MU) on Ethereum, with custody vault.

Ondo Finance has announced the live launch of the first third-party custodial tokenized U.S. securities designed to operate entirely within the existing U.S. regulatory framework. The initiative, launched in partnership with Broadridge Financial Solutions, introduces a model where token holders retain full proxy voting rights and receive official issuer communications.

The initial production deployment involves the tokenization of the BlackRock iShares Core S&P 500 (IVV) ETF and Micron (MU) stock. According to an official announcement from Ondo Finance, these assets are issued on the Ethereum blockchain and are backed 1:1 by the underlying shares, which remain held within traditional regulated U.S. custody chains.

Operational Structure and Regulatory Alignment

The launch follows a specific custodial model described by the Securities and Exchange Commission (SEC) in a January 2026 statement. In this framework, a third party holds an issuer’s securities and issues digital assets representing a holder’s entitlement to those underlying assets.

To maintain compliance, Oasis Pro TA, LLC—an SEC-registered transfer agent and subsidiary of Ondo Finance—is responsible for minting the tokens. The underlying shares never leave the traditional financial infrastructure. Instead, the tokens serve as digital entitlements, with transfer restrictions enforced by participating broker-dealers, transfer agents, and custodians according to established regulatory requirements.

Integration of Shareholder Rights

A central feature of this deployment is the integration of shareholder governance through Broadridge. Traditionally, tokenized representations of stocks have struggled to bridge the gap between on-chain ownership and off-chain governance rights. Through this partnership, token holders can access ProxyVote.com to participate in proxy voting and receive regulatory disclosures.

Broadridge indicated that this allows investors in tokenized securities to receive the same protections and rights as those holding shares through a standard U.S. brokerage account. This includes:

  • Direct participation in shareholder votes.
  • Receipt of official issuer communications.
  • Access to regulatory disclosures.

Market Context

This development marks a shift from synthetic or offshore tokenization models, which often lack direct links to the governance mechanisms of the underlying U.S. equities. By utilizing a registered transfer agent and a legacy governance provider like Broadridge, the project aims to demonstrate that public blockchain infrastructure can host U.S. securities without departing from current legal standards.

While the service is now live for these specific assets, the broader adoption of this model will depend on the continued participation of regulated custodians and broker-dealers who must enforce the necessary compliance checkpoints for each transaction.