Key Takeaways
Ondo Finance launched a tokenized version of Strategy’s STRC perpetual preferred stock on May 5, offering non-U.S. investors an 8.03 percent net yield on the Ethereum, BNB Chain, and Solana blockchains.
"Tokenizing it reduces net yield (wrapper fees), adds risk (smart contract, AI), and fragments the thin float,” said Kevin Yedid-Botton, investor and portfolio manager at ParaFi Capital, questioning the structure.
The underlying Nasdaq-listed STRC stock pays an 11.5 percent dividend, backed by Strategy's Bitcoin treasury strategy. However, Ondo Global Markets, the British Virgin Islands-based entity offering the token, is subject to a 30 percent U.S. withholding tax on dividends. According to Ondo's documentation, these net dividends are automatically reinvested into more STRC shares rather than paid out, providing investors with a total return exposure through an increasing number of shares per token.
The launch represents another step in Ondo's strategy to bridge traditional financial assets and blockchain rails, a move recently validated by its inclusion in the Depository Trust & Clearing Corporation's (DTCC) tokenization working group. This initiative, which includes firms like BlackRock, JPMorgan, and Goldman Sachs, aims to build the core infrastructure for tokenized assets in U.S. capital markets.
Despite the multi-chain launch, some market participants have raised concerns. Yedid-Botton argued that the tokenization could fragment the already thin liquidity of the underlying STRC stock on Nasdaq. The STRC stock itself closed at $99.95 on Monday, just below its $100 par value, with trading volume declining in recent days.
The 8.03 percent net yield displayed on Ondo's platform, compared to the 11.5 percent headline yield of the stock, has also drawn scrutiny. The difference stems from the 30 percent withholding tax applied to dividends paid by U.S. companies to the BVI-based Ondo entity. This structure means token holders accrue value through share reinvestment rather than receiving cash dividends, a mechanism that experts suggest could cause the token's price to diverge from the STRC stock price over time.
The STRC token launch follows Ondo's recent announcement that it has joined the DTCC’s Industry Working Group to help design the future of tokenized assets in the U.S. The DTCC, which custodies over $114 trillion in assets, is a central pillar of U.S. capital markets. Ondo's participation places it alongside financial giants like Bank of America, Citadel Securities, and Morgan Stanley in shaping standards for on-chain financial products.
This focus on regulated infrastructure has become a core part of Ondo's identity. The firm was one of the largest tokenizers of U.S. Treasuries, and market data from May 4 showed its total value locked (TVL) at $3.53 billion, with $13.26 million in revenue generated in the first quarter of 2026.
This article is for informational purposes only and does not constitute investment advice.
