Ondo to Expand $365M Tokenization Business to Solana by 2026
Ondo Finance has announced its plan to launch tokenized U.S. stocks and exchange-traded funds (ETFs) on the Solana blockchain, with a target rollout in early 2026. This move represents a significant expansion of Ondo's existing Global Markets product, which has already issued approximately $365 million in onchain assets across other blockchains. The initiative will make Ondo's catalog of over 100 U.S. stocks and ETFs available to Solana's user base, combining traditional financial exposure with the speed and efficiency of a high-performance blockchain.
The core objective is to allow investors to hold exposure to assets like U.S. equities in the same digital wallet used for stablecoins and other cryptocurrencies. This integration aims to provide 24/7 trading and settlement in seconds, a stark contrast to the traditional T+1 settlement cycle that became standard in U.S. markets on May 28, 2024. While the creation and redemption of tokens will align with traditional market hours (24/5), the tokens themselves can be transferred between wallets and used in applications around the clock.
Custody-Backed Model Ensures Tokens Track Real-World Assets
To maintain credibility and a stable peg, Ondo's tokenized stocks will follow a custody-backed model. The underlying securities are held with one or more U.S.-registered broker-dealers, ensuring that each onchain token corresponds to a real-world asset. This structure provides token holders with economic exposure—including price appreciation and dividend effects—but does not confer direct shareholder rights, such as voting. Formal ownership remains with the offchain custodial structure.
A critical component of this system is the use of Chainlink as the official oracle provider. Chainlink will develop custom data feeds for each tokenized equity, which will account for both price movements and corporate actions like dividend payments. This ensures that all participants in the ecosystem, from trading venues to risk management protocols, have a single, consistent reference for each token's real-time value. This structure is designed to prevent the token's price from drifting away from its underlying asset.
Solana's Token Extensions Provide Built-In Compliance
Ondo's choice of Solana is strategic, driven by the network's technical capabilities and large retail audience. In the first half of 2025, Solana averaged 3 million to 6 million daily active addresses and offered transaction fees around $0.00025, making it an ideal environment for high-frequency trading applications. These characteristics align with Ondo's goal of making tokenized securities feel native to crypto users.
More importantly, Solana's Token Extensions, specifically Transfer Hooks, are crucial for managing regulatory compliance. These tools allow Ondo to embed rules directly into the token itself, such as jurisdiction filters and investor eligibility checks. Each time a token is transferred, a piece of code runs to verify that both the sender and receiver are permitted to hold the asset. This onchain enforcement mechanism ensures that compliance travels with the asset, rather than relying on individual applications to enforce the rules, solving a major challenge for tokenizing regulated securities.
