Ethereum News Today: Blockchain Democratizes U.S. Stocks for Global Investors via Ethereum

Ondo Finance has launched a tokenized equity platform called Ondo Global Markets, providing non-U.S. investors access to over 100 U.S. stocks and exchange-traded funds (ETFs) on the Ethereum blockchain. This move is part of a broader trend in the financial industry, with platforms like Robinhood, Gemini, and Kraken also entering the tokenized equity market [1]. The service is currently available to investors in Asia-Pacific, Europe, Africa, and Latin America but is not offered to U.S. residents [1].

The tokenized equities are backed by securities held at U.S.-registered broker-dealers and include representations of major firms like Apple (AAPL) and Nvidia (NVDA), as well as the QQQ ETF [1]. These tokens can be transferred between wallets and used in decentralized finance (DeFi) protocols, enhancing liquidity and accessibility. Ondo has partnered with infrastructure providers such as BitGo, Ledger, and Chainlink to support the rollout of the platform [1].

Ondo Finance plans to significantly expand its offerings, aiming to include over 1,000 tokenized assets by the end of 2025 and introduce the service to Solana and BNB Chain. The company also aims to provide interoperability between these blockchains through LayerZero technology [1]. Nathan Allman, CEO of Ondo Finance, emphasized the role of Ondo Global Markets in democratizing access to U.S. securities by leveraging blockchain technology, similar to how stablecoins have digitized the U.S. dollar [1].

The tokenized equity market is still in its early stages, with the market cap of tokenized stocks standing at $342 million as of the latest data, representing approximately 1.2% of the broader tokenized real-world assets (RWAs) market [2]. While the technology offers increased accessibility, it remains in a legal gray area, with some experts noting that tokenized stocks do not confer the same legal protections, voting rights, or direct claim on company assets as traditional stocks [2].

Ondo’s launch is supported by Alpaca, a self-clearing broker-dealer, through a strategic integration that enables seamless tokenization of U.S. stocks and ETFs. The partnership aims to address common barriers faced by global investors, such as high fees, limited access, and cumbersome settlement processes [4]. According to McKinsey, the tokenized market capitalization could reach around $2 trillion by 2030 across various asset classes [4]. Ondo plans to scale to over 1,000 assets by year-end and expand the service to Solana and BNB Chain [1].

The tokenized equities offered by Ondo Global Markets are fully backed by U.S. stocks and ETFs, held at U.S.-registered broker-dealers and secured by cash in transit. The tokens are supported by a range of crypto wallets and protocols, including Bitget Wallet, Trust Wallet, and Chainlink [3]. Ondo emphasizes the security and transparency of its offering, ensuring that the tokens provide economic exposure to the value of their underlying assets [3].

As tokenization continues to evolve, regulatory scrutiny and market uncertainty remain key challenges. However, the expansion of platforms like Ondo Finance indicates growing interest in leveraging blockchain for traditional financial instruments. While tokenized stocks have not yet reached mainstream adoption, their potential to enhance liquidity and accessibility is being closely watched by market participants and regulators alike [2].

Source:

[1] Ondo Finance Rolls Out Tokenized U.S. Stocks, ETFs as ... (https://www.coindesk.com/business/2025/09/03/ondo-finance-rolls-out-tokenized-u-s-stocks-etfs-as-equity-tokenization-ramps-up)

[2] Tokenized Equity Product xStocks Launches on Ethereum (https://cointelegraph.com/news/xstocks-launches-ethereum-60-tokenized-stocks-nvidia-tesla)

[3] Ondo Brings Over 100 Tokenized U.S. Stocks and ETFs ... (https://www.prnewswire.com/in/news-releases/ondo-brings-over-100-tokenized-us-stocks-and-etfs-onchain-starting-on-ethereum-302545276.html)

[4] Ondo Finance and Alpaca Collaborate to Tokenize US ... (https://www.businesswire.com/news/home/20250903244835/en/Ondo-Finance-and-Alpaca-Collaborate-to-Tokenize-US-Stocks-and-ETFs)