Tokenization of U.S. Equities and the Emergence of Wall Street 2.0: How Ondo and Gate Are Reshaping Global Finance

The financial world is on the cusp of a paradigm shift. Traditional markets, long governed by rigid infrastructure and geographic constraints, are now being reimagined through blockchain technology. At the forefront of this transformation is the tokenization of U.S. equities—a movement that promises to democratize access, enhance liquidity, and bridge the gap between Wall Street and decentralized finance (DeFi). Central to this evolution is the collaboration between Ondo Finance and Gate, which has introduced a groundbreaking platform for trading tokenized stocks and ETFs on-chain. By leveraging Ethereum, BNB Chain, and Solana, these platforms are not only redefining market hours but also dismantling barriers to entry for global investors.

A New Era of On-Chain Liquidity

Ondo’s Global Markets platform, launched in Q3 2025, has already tokenized over 100 U.S. equities and ETFs, including blue-chip assets like AAPLON, TSLAON, and SPYON, with plans to scale to 1,000+ assets by year-end [1]. Each token is fully backed 1:1 by physical securities held at U.S.-registered broker-dealers, ensuring institutional-grade transparency and compliance [2]. This model allows users to mint and redeem tokens 24/5, while on-chain transfers operate 24/7, enabling fractional ownership and eliminating the need for intermediaries [1].

The partnership with Alpaca’s Broker API further amplifies this initiative by streamlining the tokenization process for U.S. stocks and ETFs, making these assets accessible to a global audience [5]. Meanwhile, Gate’s xStocks—such as AAPLx and TSLAx—complement this ecosystem by offering 24/7 trading on-chain, supported by infrastructure from BitGo, Ledger, and Chainlink [1]. These platforms are not just digitizing assets; they are creating a seamless bridge between traditional finance (TradFi) and DeFi, where tokenized equities can be staked, lent, or borrowed within decentralized protocols [4].

Global Access and Regulatory Innovation

One of the most compelling aspects of this collaboration is its focus on expanding access to non-U.S. investors. By enabling 24/7 trading and fractional shares, Ondo and Gate are addressing the limitations of traditional markets, where high entry barriers and time zone constraints often exclude emerging markets [1]. For instance, investors in Asia-Pacific, Europe, and Latin America can now participate in U.S. equities without navigating the complexities of cross-border settlements or market closures [2].

Regulatory compliance remains a cornerstone of this innovation. Ondo’s tokenized assets are safeguarded by daily reserve verification and bankruptcy-remote structures, ensuring that underlying securities are protected from counterparty risks [4]. Similarly, xStocks—tokenized U.S. equities issued by Backed Finance—operate under EU frameworks like MiFID II, with assets held by Swiss custodians and tokens pegged 1:1 to physical stocks [1]. While U.S. investors are currently excluded due to regulatory restrictions, these frameworks demonstrate how tokenization can align with global compliance standards, paving the way for broader adoption.

The Infrastructure of Wall Street 2.0

The emergence of “Wall Street 2.0” is not just a metaphor—it is a tangible reality being built on blockchain. Ondo’s proprietary layer-1 blockchain, Ondo Chain, launched in February 2025, is designed for institutional use, featuring authorized validator networks and integrated oracles to ensure compliance and security [4]. This infrastructure, combined with partnerships with major wallets like OKX, Bitget, and Trust Wallet, creates a robust ecosystem for tokenized assets.

Liquidity is another critical component. Ondo’s integration with Block Street—a platform serving as a “unified liquidity layer for tokenized stocks”—provides institutional-grade liquidity, enabling advanced trading strategies like borrowing and shorting [1]. Gate’s xStocks, traded on centralized exchanges like Bybit and Kraken as well as decentralized protocols like Raydium, further enhance cross-platform interoperability [1]. While specific liquidity metrics for 2025 remain emerging, the foundational infrastructure suggests a trajectory toward deep, on-chain markets.

Broader Implications and Investment Considerations

The tokenization of U.S. equities is part of a larger trend in real-world asset (RWA) tokenization. In 2025 alone, tokenized U.S. Treasuries reached $3.5 billion in value, signaling growing institutional confidence in blockchain-based markets [3]. For investors, this represents an opportunity to diversify portfolios with assets that combine the efficiency of DeFi with the stability of TradFi. However, risks remain, including regulatory uncertainty and the need for robust custodial solutions.

The ONDO token, which serves as both governance and utility within Ondo’s ecosystem, has seen price movements tied to product launches and regulatory developments [4]. As the platform scales to 1,000+ tokenized assets and expands to Solana and BNB Chain, the token’s value proposition could strengthen further, particularly if tokenized equities gain mainstream adoption.

Conclusion

The collaboration between Ondo and Gate is more than a technological feat—it is a catalyst for reimagining global finance. By unlocking 24/7 liquidity, reducing entry barriers, and aligning with regulatory frameworks, these platforms are laying the groundwork for a future where traditional assets are as fluid and accessible as cryptocurrencies. As Wall Street 2.0 takes shape, investors who recognize the potential of tokenized equities may find themselves at the forefront of a financial revolution.

Source:
[1] Ondo debuts over 100 tokenized US stocks and ETFs on Ethereum, BNB Chain, and Solana [https://www.theblock.co/post/369284/ondo-tokenized-stocks-etfs-ethereum-bnb-chain-solana]
[2] Ondo Launches Global Markets: 100+ Tokenized U.S. Stocks on Ethereum [https://www.mexc.fm/en-TR/news/ondo-launches-global-markets-100-tokenized-u-s-stocks-on-ethereum/83956]
[3] How tokenization's 'superpowers' could transform US stock markets [https://blockworks.co/news/tokenization-superpowers-access-permissionless]
[4] Ondo Chain: Revolutionizing Asset Tokenization [https://blog.bitso.com/productos/cripto/ondo-chain-rwa]
[5] Ondo Finance and Alpaca Collaborate to Tokenize US Stocks and ETFs [https://www.newsbreak.com/the-associated-press-510077/4212052875689-ondo-finance-and-alpaca-collaborate-to-tokenize-us-stocks-and-etfs]