Author: Ondo Finance

Translation: Shenchao TechFlow

Overview by Shenchao: Ondo Finance has become the first company to issue tokenized stocks based on DTCC custodial securities, which means that on-chain stock tokens now have the backing of traditional financial clearing infrastructure for the first time. Unlike previous synthetic assets, these tokens are backed by stocks that are genuinely held at DTCC—the clearing house for the vast majority of stock trades in the United States—allowing for seamless conversion between traditional accounts and on-chain forms. This marks the official beginning of Wall Street connecting DeFi using its own infrastructure, rather than starting from scratch.

Ondo Finance today launched the first batch of digital twin U.S. stock tokens generated by DTCC tokenization services. The securities anchored to these tokens are held at DTC (Depository Trust Company), which is responsible for the clearing and settlement of the vast majority of securities transactions in the United States. Through DTCC's tokenization services, these tokenized rights share the same CUSIP codes and stock symbols as the underlying securities, which can be delivered to DTC participant wallets for use by clients like Ondo.

Ondo has joined what is the largest tokenization project in DTCC's history, with participants including BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and the New York Stock Exchange among more than a dozen traditional financial and DeFi institutions. This project signifies that traditional finance and DeFi are moving towards interoperability, rather than establishing parallel systems independently.

Ondo Finance CEO Ian De Bode stated: "Ondo is the only company building all pathways for U.S. securities tokenization. Today's partnership with DTCC demonstrates that the design intention of Ondo’s stock infrastructure is to interoperate with institutional market infrastructure, rather than compete with it. As the tokenized securities market continues to evolve, Ondo expects to play a leading role in bringing these assets to on-chain investors."

This project represents a significant milestone for DTCC's tokenization services, enabling Ondo to deepen its role in the U.S. capital market infrastructure as tokenized securities increasingly integrate into traditional market frameworks.

Operating Mechanism

The underlying assets are the publicly listed stock of Circle (CRCL) and SPDR S&P 500 ETF (SPY), represented on-chain as CRCLon and SPYon—Ondo stock tokens fully backed by their respective securities. In this model, DTCC's tokenization services generate DTC tokenized rights for CRCL and SPY, serving as the digital twins of the underlying securities of CRCLon and SPYon tokens. Ondo integrates this network through Alpaca Markets, which connects Ondo to the DTC participant network. The securities held by DTC can be converted between traditional and tokenized forms, providing greater flexibility, access to new liquidity pools, and enhanced digital asset functions through the digital twin structure. These additional functionalities directly translate into enhanced utility of Ondo stock tokens on exchanges, wallets, and DeFi platforms within Ondo's global partner network. The underlying securities remain securely held within the DTC custodial infrastructure.

DTCC President and CEO Frank La Salla stated: "DTCC proves that we can apply the same institutional rigor to tokenization as we do with traditional assets, while continuing to uphold the integrity and resilience of global financial markets. DTCC's tokenization services will institutionalize the tokenized market from day one and will be a key driver of the future digital ecosystem, enhancing trust, security, and scale in the digital world."

About Ondo Finance

Ondo Finance is a blockchain technology company focused on the tokenization of real-world assets, bringing institutional-level financial products onto the chain. By connecting traditional finance with decentralized infrastructure, Ondo aims to make capital markets more accessible, transparent, and efficient.