On September 3, Ondo Finance officially launched Ondo Global Markets, issuing the first batch of over 100 tokenized US stocks and ETFs on Ethereum, with plans to expand to over 1,000 assets within the year (for non-US/non-UK qualified users). The products are custodied by regulated broker-dealers holding the underlying securities, and the tokens can be instantly transferred on-chain and are compatible with DeFi. This is not only a significant move by Ondo in the RWA space but also a landmark event marking the dawn of the coin-stock era.
How is this different from the early "synthetic stocks"?
There are many ways to "move stocks onto the blockchain", but the key factors that determine practicality and compliance lie in the design of legal relationships and asset-backed links.
Unlike the early "synthetic stocks" that relied solely on derivatives pricing tracking, Ondo adopts a model that is closer to traditional financial architecture. Firstly, the underlying securities are not just at the "shadow contract" level, but are actually held by regulated brokerages or custodians. The on-chain tokens are minted and burned to achieve a 1:1 peg with these assets, theoretically ensuring the existence of redemption rights.
Secondly, this architecture requires the establishment of a compliant and efficient clearing and settlement channel, allowing token holders to exchange their tokens for real stocks or cash when making a redemption request through processes such as KYC, compliance review, and registration transfer. The smoothness of the redemption mechanism will directly affect whether the price difference between the token market price and the underlying asset can be promptly eliminated.
In addition, to achieve true "same rights for the same shares," tokenized securities must also encompass corporate actions such as dividends, stock splits, and voting, thereby linking traditional equity distribution with on-chain identity mapping. However, this aspect involves the complex integration of legal confirmation and registration systems, which still needs to be implemented through trustees or intermediary arrangements.
There is also a natural tension between technology and compliance: tokenized securities have the potential to seamlessly integrate with DeFi protocols, but in reality, they are often constrained by compliance issues such as whitelists, transfer restrictions, or geographical barriers. The path currently chosen by Ondo (for example, Ondo is not currently open to users in the US and UK) is to gradually explore on-chain composability while maintaining legality, reserving space for a more open capital market in the future.
How will this reshape the landscape of crypto finance?
First, the paradigm of asset allocation is changing. In the past, on-chain assets primarily revolved around BTC, ETH, and stablecoins. Nowadays, tokenized stocks, ETFs, and the rapidly growing tokenized government bonds and money market funds have brought the "stocks-bonds-crypto" mixed portfolio onto the blockchain. For institutions and long-term funds, this means that the friction of cross-market allocation has been significantly reduced; for DeFi protocols, more diverse collateral and more robust interest rate anchors have emerged. Data shows that by 2025, the RWA market size will reach billions of dollars, with government bonds and money market fund products being the first to be mainstream accepted as collateral. This trend may extend to tokenized stocks.
Secondly, the logic of liquidity and market making will also be reshaped. On-chain markets operate 24/7 without interruption, while traditional stock markets still adhere to daily closing and T+ settlement. This "time difference" inevitably brings friction: the prices of tokenized stocks on-chain may reflect overnight events or global sentiment in advance, and when the traditional market opens, the price gap needs to be rapidly filled. This forces market makers to develop arbitrage and hedging tools that span time zones and markets, with both technical and financial barriers being very high, resembling the evolutionary path of early cross-market arbitrage.
The expansion of collateral dimensions will inject new momentum into the derivatives and lending markets. Tokenized government bonds represented by BlackRock's BUIDL have already been accepted as margin by crypto exchanges. If stock tokens can also enter the margin pool in the future, they will be used for repurchase, lending, futures margin, and even clearing, truly embedding into the global financial infrastructure. This means that the derivatives market may welcome a batch of new contracts collateralized by "tokenized physical assets," which will reduce counterparty risk while bringing the volatility of traditional markets onto the chain.
However, compliance remains a decisive factor. Ondo is currently not targeting users in the United States and the United Kingdom, reflecting the divergence in regulatory attitudes. Relatively open regions such as the European Union, Hong Kong, and Singapore may become the first liquidity centers for tokenized securities, leading to typical phenomena of "regulatory arbitrage" and the concentration of liquidity in specific regions.
In this major trend, the real winners may not be a single platform, but the entire industry chain. Brokers and custodians will be responsible for holding and redeeming underlying securities; market makers and quantitative institutions will play a role in cross-market arbitrage and risk hedging; clearing and settlement service providers need to connect on-chain transactions with traditional clearinghouses; wallet and KYC providers must find a balance between compliance and user experience.
Summary
The significance of tokenized stocks is no longer just about putting "old wine in new bottles," but rather about opening up a new intermediary space between crypto finance and traditional finance. If the tokenization of government bonds is a "test run," then stock tokenization resembles a "live drill" — it could fundamentally expand the asset base of DeFi and blur the boundaries between the crypto world and Wall Street.
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Is Ondo Global Markets just the beginning, or is it a watershed moment in market structure?
Written by: Tia, Techub News
On September 3, Ondo Finance officially launched Ondo Global Markets, issuing the first batch of over 100 tokenized US stocks and ETFs on Ethereum, with plans to expand to over 1,000 assets within the year (for non-US/non-UK qualified users). The products are custodied by regulated broker-dealers holding the underlying securities, and the tokens can be instantly transferred on-chain and are compatible with DeFi. This is not only a significant move by Ondo in the RWA space but also a landmark event marking the dawn of the coin-stock era.
How is this different from the early "synthetic stocks"?
There are many ways to "move stocks onto the blockchain", but the key factors that determine practicality and compliance lie in the design of legal relationships and asset-backed links.
Unlike the early "synthetic stocks" that relied solely on derivatives pricing tracking, Ondo adopts a model that is closer to traditional financial architecture. Firstly, the underlying securities are not just at the "shadow contract" level, but are actually held by regulated brokerages or custodians. The on-chain tokens are minted and burned to achieve a 1:1 peg with these assets, theoretically ensuring the existence of redemption rights.
Secondly, this architecture requires the establishment of a compliant and efficient clearing and settlement channel, allowing token holders to exchange their tokens for real stocks or cash when making a redemption request through processes such as KYC, compliance review, and registration transfer. The smoothness of the redemption mechanism will directly affect whether the price difference between the token market price and the underlying asset can be promptly eliminated.
In addition, to achieve true "same rights for the same shares," tokenized securities must also encompass corporate actions such as dividends, stock splits, and voting, thereby linking traditional equity distribution with on-chain identity mapping. However, this aspect involves the complex integration of legal confirmation and registration systems, which still needs to be implemented through trustees or intermediary arrangements.
There is also a natural tension between technology and compliance: tokenized securities have the potential to seamlessly integrate with DeFi protocols, but in reality, they are often constrained by compliance issues such as whitelists, transfer restrictions, or geographical barriers. The path currently chosen by Ondo (for example, Ondo is not currently open to users in the US and UK) is to gradually explore on-chain composability while maintaining legality, reserving space for a more open capital market in the future.
How will this reshape the landscape of crypto finance?
First, the paradigm of asset allocation is changing. In the past, on-chain assets primarily revolved around BTC, ETH, and stablecoins. Nowadays, tokenized stocks, ETFs, and the rapidly growing tokenized government bonds and money market funds have brought the "stocks-bonds-crypto" mixed portfolio onto the blockchain. For institutions and long-term funds, this means that the friction of cross-market allocation has been significantly reduced; for DeFi protocols, more diverse collateral and more robust interest rate anchors have emerged. Data shows that by 2025, the RWA market size will reach billions of dollars, with government bonds and money market fund products being the first to be mainstream accepted as collateral. This trend may extend to tokenized stocks.
Secondly, the logic of liquidity and market making will also be reshaped. On-chain markets operate 24/7 without interruption, while traditional stock markets still adhere to daily closing and T+ settlement. This "time difference" inevitably brings friction: the prices of tokenized stocks on-chain may reflect overnight events or global sentiment in advance, and when the traditional market opens, the price gap needs to be rapidly filled. This forces market makers to develop arbitrage and hedging tools that span time zones and markets, with both technical and financial barriers being very high, resembling the evolutionary path of early cross-market arbitrage.
The expansion of collateral dimensions will inject new momentum into the derivatives and lending markets. Tokenized government bonds represented by BlackRock's BUIDL have already been accepted as margin by crypto exchanges. If stock tokens can also enter the margin pool in the future, they will be used for repurchase, lending, futures margin, and even clearing, truly embedding into the global financial infrastructure. This means that the derivatives market may welcome a batch of new contracts collateralized by "tokenized physical assets," which will reduce counterparty risk while bringing the volatility of traditional markets onto the chain.
However, compliance remains a decisive factor. Ondo is currently not targeting users in the United States and the United Kingdom, reflecting the divergence in regulatory attitudes. Relatively open regions such as the European Union, Hong Kong, and Singapore may become the first liquidity centers for tokenized securities, leading to typical phenomena of "regulatory arbitrage" and the concentration of liquidity in specific regions.
In this major trend, the real winners may not be a single platform, but the entire industry chain. Brokers and custodians will be responsible for holding and redeeming underlying securities; market makers and quantitative institutions will play a role in cross-market arbitrage and risk hedging; clearing and settlement service providers need to connect on-chain transactions with traditional clearinghouses; wallet and KYC providers must find a balance between compliance and user experience.
Summary
The significance of tokenized stocks is no longer just about putting "old wine in new bottles," but rather about opening up a new intermediary space between crypto finance and traditional finance. If the tokenization of government bonds is a "test run," then stock tokenization resembles a "live drill" — it could fundamentally expand the asset base of DeFi and blur the boundaries between the crypto world and Wall Street.