Ondo Finance Puts Blackrock’s S&p 500 Etf and Micron Stock on the Ethereum Blockchain for the First Time
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Written by
Simonas Brazionis - Updated 2026-07-03 12:13:43
Ondo Finance on July 2, 2026 launched tokenized versions of BlackRock's iShares Core S&P 500 ETF (IVV) and Micron Technology stock on the Ethereum blockchain. The launch marks the first time US-listed securities have been tokenized on a public blockchain while remaining inside the existing US capital markets infrastructure – without any involvement from the original issuers.
The structure relies on the SEC's January 2026 guidance on third-party custodial models for tokenized securities. Broadridge and SEC-registered transfer agent Oasis Pro TA underpin the mechanism. The underlying IVV shares and Micron stock are held within the traditional custody system. Oasis Pro then issues tokens that are backed 1:1 by those underlying securities. The tokens exist on Ethereum and are held by regulated custodians.
The critical legal distinction is that this model does not require BlackRock or Micron to do anything. They are not issuers of the tokens and have no role in the process. The tokenization happens entirely around the securities, not through them. That makes it replicable for any publicly traded US security without needing cooperation from the underlying company.
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Why This is Structurally Different From Previous Tokenization Attempts
Earlier tokenized stock products – including FTX's stock tokens before its collapse and several offshore platforms – operated outside US regulatory frameworks. They were IOUs backed by platforms, not actual custody of the underlying shares. When those platforms failed, token holders lost everything because they had no direct claim on the securities.
The Ondo model is fundamentally different. The underlying shares sit inside the DTCC-linked custody system. The token is a legal representation of a real custody position. If Oasis Pro or Ondo failed tomorrow, the underlying IVV shares would still exist in custody and could be distributed to holders. That structural safety is what makes the product meaningful for institutional adoption.
Securitize, the company that manages BlackRock's tokenized Treasury fund BUIDL, went public on the NYSE on the same day. It opened up 3% on its debut, adding another data point to the narrative that the on-chain finance infrastructure layer is maturing rapidly.
What Ondo Gets Right – and What is Still Missing
The product solves the custody problem. It does not yet solve the liquidity problem. IVV trades billions of dollars per day on-chain in its traditional form. The tokenized version will need time and institutional adoption to build comparable liquidity on Ethereum.
Trading hours are also a question. Traditional ETFs trade during exchange hours. Tokenized versions on Ethereum trade around the clock, which creates arbitrage windows between the on-chain price and the official NAV. How that gap gets managed will be closely watched by institutional participants considering the product.
What to Watch
The Ondo tokenized IVV launch is a proof of concept. Whether it becomes a real product depends on whether large custodians – Fidelity, State Street, BNY Mellon – integrate with the Oasis Pro custody model.
For Ethereum specifically, this is a meaningful use case that generates real on-chain activity and fees from institutional-grade assets. Anyone holding Ethereum-based assets should ensure they use one of the best crypto wallets that supports the Ethereum token standard used by these products – typically ERC-20 – to be able to interact with tokenized securities as they become more widely available.
