TL;DR
1) Ondo Finance launches its Global Markets platform, tokenizing U.S. stocks and ETFs: The platform enables investors outside the United States to gain economic exposure to securities listed on the NYSE and NASDAQ through blockchain-based tokens, each fully backed by the corresponding asset.
2) Token mechanism similar to stablecoins: Token holders do not directly own the underlying stocks, but instead hold tokens that can be redeemed for stablecoins, while enjoying the full economic benefits of the underlying assets (including price movements and automatically reinvested dividends).
3) Addressing traditional market pain points: The platform offers 24/7 global access, instant minting and redemption, free transferability, and low entry barriers—removing traditional hurdles such as geographical restrictions, platform lock-in, and high costs.
4) The “Wall Street 2.0” vision: Ondo is committed to democratizing finance through blockchain technology, making high-quality financial products—once accessible only to wealthy individuals and institutions—available to anyone with an internet connection worldwide.
5) Robust investor protections: Safeguards include bankruptcy-remote legal structures, full asset backing, third-party custodial arrangements, and daily proof-of-reserves, ensuring comprehensive protection of investor interests.
1. What Is Ondo Finance
Ondo Finance is dedicated to enhancing the security, efficiency, and accessibility of financial services through institutional-grade on-chain products. The company consists of a technology division focused on developing blockchain-based financial software, and an asset management division that creates and manages tokenized products. Ondo Finance is actively building protocols that support the tokenization of both real-world assets (RWAs) and traditional cryptocurrencies, and it was the first firm to tokenize exposure to U.S. Treasuries.
2. What Is Ondo Global Markets
Ondo Global Markets, developed by Ondo Finance, is a platform that tokenizes publicly traded U.S. stocks and ETFs. It allows investors outside the United States to gain economic exposure to these assets by minting, transferring, and redeeming security tokens on Ethereum, with Solana, BNB Chain, and other blockchains soon to be supported. Each token is fully backed by the corresponding stock or ETF, which is held by one or more U.S.-licensed broker-dealers acting as custodians (including any funds in transit).
2.1 How Ondo GM Works
Ondo GM adopts a design inspired by stablecoins, aiming for simplicity and ease of use. Token holders do not directly own the underlying stocks or gain shareholder rights. Instead, they hold tokens that can be redeemed for stablecoins while receiving the full economic returns of the underlying assets.
Ondo’s tokenized stocks and ETFs are digital tokens that deliver the complete investment performance of publicly traded assets. Each token fully reflects the economic performance of its corresponding asset—including price movements, dividend distributions, and corporate actions, so token holders receive the same economic returns as direct stockholders. Dividends are automatically reinvested into the asset (net of applicable taxes).
For example: AAPLon (the “-on” suffix denotes an Ondo tokenized asset) represents the total return of Apple Inc. (AAPL). Holding AAPLon is equivalent to holding Apple stock with all dividends automatically reinvested. The token is denominated in U.S. dollars.
Just as USDT allows you to hold U.S. dollars on the blockchain, Ondo’s tokenized stocks enable you to “hold” Apple, Tesla, and other equities on-chain, while capturing the same investment returns as their real-world counterparts.
3. Core Features of Ondo Global Markets
3.1 Access to Thousands of Real-World Assets (RWAs): Users can gain exposure to over a thousand high-quality securities listed on the NYSE and NASDAQ, including both equity and fixed-income ETFs as well as individual stocks.
3.2 24/7 Global Access: Ondo GM will be open to participants outside the United States, enabling users worldwide to easily access high-quality real-world assets.
3.3 Instant Minting and Redemption: Within preset limits, users can instantly mint and redeem tokenized securities using designated stablecoins and yield-bearing tokens. Subscriptions and redemptions via cash will also be supported.
3.4 Full Liquidity: Ondo GM assets are designed to match the liquidity of their underlying securities, allowing for immediate trading with minimal slippage.
3.5 Built-In Margin Access: Borrow against tokenized holdings at interest rates competitive with those in traditional markets.
3.6 Around-the-Clock Service Access: Investors will have continuous access to a suite of DeFi-enabled investment services, allowing them to compare and select the most favorable margin rates from both traditional and on-chain capital sources.
3.7 Institutional-Grade Investor Protection: All underlying assets backing Ondo GM tokens will be held in bankruptcy-remote entities, giving investors secured claims. Unless explicitly approved, underlying securities will not be lent to short sellers, and any income from securities lending will be returned to investors.
3.8 Free Transferability: While user registration is required to mint and redeem tokens, they can be freely transferred on secondary markets outside the U.S. and used across DeFi. There will be no platform lock-in—investors can move their holdings to any wallet or platform of their choice.
4. How Ondo Global Markets Addresses Pain Points in Traditional Capital Markets
4.1 Accessibility and Cost
Traditional Challenge: Many global investors struggle to access U.S. financial products. Even when access is possible, they often face high minimum balance requirements and significant fees.
Ondo Solution: Anyone in eligible regions outside the U.S. can gain exposure to U.S. securities using stablecoins at minimal cost, removing traditional cost and geographic barriers.
4.2 Platform Lock-In
Traditional Challenge: Investors are locked into specific platforms, and switching is expensive, cumbersome, and slow.
Ondo Solution: Tokens can be freely transferred outside the U.S., enabling a seamless, cross-platform investment experience.
4.3 Platform Fragmentation
Traditional Challenge: Securities held across different brokers cannot interoperate, making cross-collateralization difficult.
Ondo Solution: Ownership is recorded on-chain, ensuring assets are fully interoperable and capable of supporting complex, cross-platform financial operations.
4.4 Limited and Expensive Margin
Traditional Challenge: Retail investors outside the U.S. face limited and costly margin options.
Ondo Solution: Direct integration with institutional-grade lending options allows investors to borrow through third-party protocols or platforms directly.
4.5 Hidden Risks
Traditional Challenge: Many platforms lend out client securities without clear disclosure, exposing investors to hidden risks.
Ondo Solution: Securities are never lent without explicit permission. For clients who opt in, 100% of the lending yield is returned to them.
5. The Vision of Ondo Global Markets: From Wall Street 2.0 to the Open Economy
5.1 The Concept of Wall Street 2.0
Ondo describes its vision as “Wall Street 2.0”, representing the next evolution of financial markets where traditional systems converge with blockchain technology to build a more efficient and inclusive ecosystem.
- Real-Time Settlement: Replaces the traditional T+1 settlement cycle.
- Global Accessibility: Removes geographic and regulatory barriers.
- Transparency: All transactions and holdings are recorded on-chain.
- Composability: Financial products and services can be combined like building blocks.
- User Sovereignty: Investors maintain full control over their assets.
5.2 The Broader Vision of the Open Economy
Ondo is committed to accelerating the transition toward an open economy by building platforms, assets, and infrastructure that bring financial markets on-chain.
The open economy is a concept that goes beyond traditional financial systems: it envisions a globally accessible framework where goods, services, and information flow freely. Powered by technology, this vision reduces barriers to capital, products, and knowledge, enabling individuals and organizations to participate in production, consumption, innovation, and civic activity in ways that were historically out of reach for many.
This paradigm shift offers several key benefits:
- Universal access to goods and services through decentralized marketplaces.
- Democratized access to information via blockchain-powered platforms.
- Direct exchange of goods and knowledge through decentralized networks.
- Enhanced privacy and security through cryptographically reinforced systems.
5.3 Impact on Global Financial Inclusion
Ondo GM’s vision places particular emphasis on communities traditionally excluded from the financial system. Today, billions of people lack access to high-quality financial assets, preventing them from benefiting from modern finance. Through Ondo GM:
- A factory worker in Vietnam can easily, instantly, and affordably own shares of Nike, gaining greater participation in the value she helps create.
- Investors in developing countries can access financial products and services once reserved only for wealthy individuals or institutional clients.
- Anyone with an internet connection can hold stable and reliable assets, such as dollar-backed securities.
6. Outlook for Ondo GM
Ondo Finance will officially launch tokenized stocks on September 3. The introduction of Ondo GM represents more than just a technological breakthrough—it is a milestone in the democratization of finance. By lowering barriers to entry, enhancing transparency, and opening new avenues for innovation, Ondo GM signals a fundamental shift in how financial services are delivered. With its rollout and continued growth, we are witnessing a historic transformation: financial markets moving from closed and fragmented systems to an open, interconnected ecosystem.
In this new financial paradigm, everyone will have the opportunity to participate in global capital markets and access financial products and services once reserved for only a privileged few. This is the vision of Ondo Global Markets, a more equitable, faster, and accessible financial future.
7. Frequently Asked Questions about Ondo GM
7.1 How Do Ondo Tokenized Stocks Provide Liquidity Comparable to Traditional Markets?
Ondo Global Markets is designed to seamlessly access liquidity from traditional equity markets. As a result, tokenized stocks on the platform can generally offer the same level of liquidity as their underlying assets traded on conventional exchanges. Unlike many other digital assets, Ondo tokenized stocks do not require dedicated on-chain liquidity pools. Please note that minting or redeeming tokens requires primary purchasers to successfully complete KYC with the token issuer.
7.2 When Can I Trade Ondo Tokenized Stocks?
Minting and redeeming directly on the Global Markets platform is available 24 hours a day, five days a week (24/5), starting Sunday at 8:00 pm ET and ending Friday at 7:59 pm ET. Peer-to-peer trading of tokens, however, is available around the clock — 24/7, 365 days a year.
Note: Minting and redeeming may be temporarily suspended due to certain corporate actions (e.g., dividends, stock splits), market conditions (e.g., extreme volatility, session transitions), or system risk controls being triggered. You can track any such pauses at status.gm.ondo.finance.
7.3 What Are the Fees?
Ondo Global Markets (BVI) Limited, the token issuer, does not currently charge any fees for minting or redeeming Ondo tokenized stocks. However, users are responsible for paying applicable gas fees.
Please note that minting and redemption prices may not always match the exact price of the underlying asset due to volatility and latency-related adjustments.
7.4 What Are Withholding Taxes?
Withholding taxes are taxes automatically deducted from certain types of income—such as dividends—before the income is distributed. For U.S. stocks, brokers are generally required to withhold a portion of dividends payable to non-U.S. investors, in line with the tax rules applicable to the entity receiving the dividends.
Ondo Global Markets, the entity that issues the tokens, is incorporated in the British Virgin Islands. As such, dividends paid by U.S. companies to this entity are subject to the standard 30% U.S. withholding tax—the default rate that applies to non-U.S. persons under U.S. tax law.
Dividends are reinvested net of withholding tax. For example, if Coca-Cola (KO) declared a dividend of $1 per share and Global Markets held 10 shares (for a total of $10 in dividends), the platform would withhold $3 (30%) for taxes and reinvest the remaining $7 into additional KO shares.
7.5 Do I Receive Dividends from Ondo Tokenized Stocks?
Ondo Global Markets does not distribute dividends as cash payouts directly to tokenholders. Instead, the equivalent value of dividends—net of applicable withholding taxes—is automatically reinvested into the underlying stock. This means you receive the full economic benefit of dividends either through a higher token price or an increased token balance, depending on the blockchain.
For example, suppose Tesla stock is trading at $100 and pays a $2 dividend. In a traditional brokerage account:
- After the $2 dividend, Tesla’s price drops to $98.
- With a 30% withholding tax (the default rate for non-U.S. investors), users receive $1.40 in cash dividends.
For Ondo tokenized stocks on Ethereum:
- The $1.40 net dividend is collected in our brokerage account.
- The $1.40 net dividend is reinvested into Tesla stock. $1.40 / $98 = 0.014 additional shares.
- Your Ondo Tesla token now represents 1.014 shares of Tesla rather than just 1 share.
As a result, the token price becomes $99.40 (1.014 × $98). While the token price may diverge slightly from Tesla’s market price, it fully reflects the total return of TSLA, including reinvested dividends (net of withholding tax).
This model simplifies dividend management and ensures your economic exposure grows automatically—without the need for manual reinvestment.
Please note that on other blockchains (such as Solana) and certain centralized exchanges, the token price may always track the per-share stock price. On these blockchains and exchanges, your token balance will automatically adjust to reflect reinvested dividends, while the token price will continue to mirror the underlying asset.
On Ethereum, dividend value is reflected in the increase of each token’s price. On Solana, however, the Scaled UI feature displays dividend value as an increase in the number of tokens shown in most wallet and frontend interfaces. Scaled UI is a Solana token extension that allows issuers to dynamically adjust user-facing token balances (for example, when distributing yield). Because the displayed balances increase, the token price remains stable. Onchain (backend), the token balance is unchanged and price rises instead. But since most of the Solana ecosystem supports Scaled UI, the economic effect is represented as a growing token balance rather than a higher per-token price.
7.6 Who is eligible to mint and redeem Ondo tokenized stocks?
Minting and redemption of Ondo tokenized stocks are available only to individuals who have successfully completed the Ondo Global Markets KYC and onboarding process, and are subject to certain jurisdiction-based restrictions. Specifically, Ondo tokenized stocks may only be offered and sold:
1) To non-U.S. persons located outside the United States who place their buy orders from outside the United States.
2) To qualified investors in the European Economic Area (EEA) and the United Kingdom.
7.7 How are my Ondo tokenized stocks secured and protected?
1) Bankruptcy-Remote Legal Structure
Ondo tokenized stocks are issued under well-established practices designed to maximize bankruptcy remoteness. This includes issuance through a special purpose vehicle (SPV) governed by a Board of Directors with an independent director, along with the segregation of assets, books, and accounts from Ondo Finance Inc. and the Ondo Foundation group. These safeguards help ensure that the assets backing the tokens remain protected even in the unlikely event of bankruptcy or insolvency.
2) Full Asset Backing and Security Interest
Every Ondo tokenized stock is fully backed by its underlying stocks and ETFs, together with any cash in transit. In addition, the issuer is required to maintain excess collateral at all times—above the level of full backing—to overcollateralize its obligations to tokenholders.
Tokenholder interests are further safeguarded by Ankura Trust Company, an independent third-party security agent, which holds a first-priority perfected security interest in this collateral. Ankura Trust is authorized to take possession of the collateral, liquidate it into cash, and distribute the proceeds to tokenholders in specified cases of issuer default. For example, if the issuer were unable to fulfill redemption requests or maintain full collateralization, tokenholders could instruct Ankura to seize the collateral, convert it into cash, and distribute the funds to tokenholders.
3) Transparent Holdings with Regulated Custodians
Ondo Global Markets provides daily attestations of tokenized stock holdings, verified by Ankura Trust Company as an independent third-party agent. Beginning October 1, 2025, these daily attestations will be publicly viewable online. All underlying assets are custodied with one or more U.S.-registered broker-dealer custodians.
Pridružite se MEXC-u i započnite trgovanje danas
