Ondo Finance Debuts First-Ever Tokenized Stocks Based on DTC Tokenized Entitlements to DTC-Held Securities
Stocks
Ondo Finance has launched the first tokenized stock representations utilizing the DTCC Tokenization Service to create digital twins of DTC-held securities. By leveraging the existing DTC infrastructure, Ondo has successfully tokenized Circle's stock (CRCL) and the SPDR S&P 500 ETF Trust (SPY) as CRCLon and SPYon. This initiative allows these assets to maintain the same CUSIP and symbol as their traditional counterparts while operating within a regulated institutional framework. Ondo accesses this network through Alpaca Markets, which facilitates the connection to the DTC participant ecosystem. This development is significant because it bridges traditional finance and decentralized infrastructure without requiring the creation of separate, isolated systems. By keeping underlying assets within the established DTC custody infrastructure, the project ensures institutional-grade safety and resiliency. This integration marks a major step toward the mainstream adoption of tokenized securities by proving that on-chain assets can interoperate directly with legacy market infrastructure.
Key points
- ▸Ondo tokenized CRCL and SPY stocks using the DTCC Tokenization Service.
- ▸Digital twins maintain original CUSIPs and symbols within DTC custody infrastructure.
- ▸Alpaca Markets provides the necessary connection to the DTC participant network.
- ▸Over a dozen firms are participating in this DTCC tokenization initiative.
Background
The Depository Trust & Clearing Corporation (DTCC) is the primary infrastructure provider for the U.S. capital markets, responsible for clearing and settling the vast majority of securities transactions. Its Tokenization Service is designed to bridge traditional financial assets with blockchain technology by creating digital representations of securities that remain under the safety and regulatory oversight of the existing DTC custody system.
Relevance
9.5/10