Ondo launches custodial tokenized securities across US

Ondo Finance announced it has launched custodial tokenized securities for investors in the United States. The offering makes digital tokens available on Ondo’s platform and on compatible blockchain networks that represent economic interests in conventional securities.

Under the program, a regulated custodian holds the underlying securities off-chain and maintains legal title. Ondo issues digital tokens that represent investors’ rights to the economic returns of those assets. Investors who buy the tokens receive the economic exposure while custody and legal ownership remain with the custodian.

The rollout applies where Ondo’s compliance and distribution framework permits participation across the United States. The firm said investor onboarding includes identity verification and suitability checks required by U.S. securities laws. Token transfers and ownership records use blockchain technology for movement and recordkeeping, while the custodian’s records determine legal entitlements and settlement finality.

Ondo described the tokenized securities as intended to streamline settlement and enable fractional interests in traditional securities. The firm released details on investor eligibility, fees and the types of securities to be tokenized alongside the launch. Investors will be able to buy, hold and transfer the tokens through compatible wallets and participating marketplaces where allowed by law.

Tokenization in a custodial model keeps statutory custody practices in place while adding electronic transferability. Industry participants contend the approach may reduce settlement steps and expand access to assets with high minimum investments, but they also emphasize the need to maintain clear legal frameworks and custodian protections for investors.