Ondo joins DTCC’s push to bring tokenized stocks into the mainstream
RWA Signal Insight
InfrastructureThe Depository Trust & Clearing Corporation (DTCC) has launched the DTCC Tokenization Service (DTS) to integrate blockchain-based assets into traditional financial market infrastructure. This service allows banks and brokers to convert eligible securities between traditional and tokenized formats while maintaining existing legal ownership rights and protections. Ondo Finance, a prominent issuer of tokenized stocks and Treasuries, is a key ecosystem collaborator alongside firms like Broadridge, DRW, and Fireblocks. Ondo participated in the Digital Assets Solutions Industry Working Group since May to provide feedback on the service's development. The initiative has already facilitated the creation of Ondo's CRCLon and SPYon tokens, which utilize digital twins of underlying securities to bridge the gap between blockchain and legacy systems. By integrating with DTCC's established plumbing, this rollout addresses critical concerns regarding the legal weight and settlement of tokenized assets. This development marks a significant step in institutionalizing tokenization by aligning it with the post-trade backbone of the U.S. financial system.
Key points
- DTCC launched the DTCC Tokenization Service to integrate blockchain assets into traditional market infrastructure.
- Ondo Finance collaborated on the service, launching CRCLon and SPYon tokens as digital twins.
- DTS enables banks and brokers to switch securities between traditional and tokenized formats.
- Ondo previously became the first tokenization firm to join DTCC's Fund/SERV transaction system.
Background
The DTCC is the central post-trade infrastructure provider for the U.S. financial markets, responsible for clearing and settling the vast majority of securities transactions. Ondo Finance is a protocol focused on bridging traditional financial assets, such as U.S. Treasuries and equities, onto public blockchains. By creating tokenized versions of these assets, Ondo aims to provide investors with on-chain access to yield-bearing and equity-linked products.