Ondo Finance Tokenizes Major Assets Under New SEC Framework

Ondo Finance has made significant strides in bridging traditional finance with decentralized markets by tokenizing BlackRock's IVV ETF and Micron stock under a new SEC framework. Introduced in January 2025, this framework provides a regulatory pathway for tokenizing securities while maintaining compliance with U.S. securities laws.

The new tokenized products utilize a third-party custody structure that separates the tokenization platform from the underlying asset custodian, reducing counterparty risk and increasing transparency. This enables investors to gain exposure to these assets through blockchain-based tokens that can be traded, transferred, or used as collateral within DeFi protocols.

The launch marks a significant step in mainstream adoption of tokenization, and its implications for institutional and retail investors are substantial. Tokenized securities offer operational efficiencies such as 24/7 trading, faster settlement, and programmable compliance. Retail investors gain access to fractional ownership of high-value assets that were previously out of reach.