The Rise of Tokenized Stocks: A New Era for Equity Trading
Tokenized stocks are rapidly gaining traction in the financial world, presenting an innovative fusion of traditional equity trading and blockchain technology. At the forefront of this movement is Ian de Bode, president of Ondo Finance, who believes that the tokenization of stocks has emerged as one of the most practical and scalable applications of crypto.
Ondo Global Markets: Milestones Achieved
Ondo Finance has made significant strides in the tokenized equities landscape with its platform, Ondo Global Markets. Since its launch in September 2025, the platform has amassed over $500 million in total value locked (TVL) and recorded an impressive $7 billion in trading volume. According to RWA.xyz data, Ondo is now the largest player in the tokenized stock market, surpassing notable competitors such as Kraken’s xStocks and Robinhood. This growth comes at a time when the overall market for tokenized stocks is nearing $1 billion, having experienced a remarkable 27% growth in just a month.
From U.S. Treasuries to Stock Tokens
Before venturing into tokenized stocks, Ondo began its journey in the realm of U.S. Treasuries, establishing itself as a leading issuer with over $2 billion in assets. This experience laid a solid foundation for their leap into stock and ETF tokenization. According to de Bode, the firm is now laser-focused on equities with robust price discovery and deep liquidity. He emphasizes that tokenizing stocks serves dual purposes: making them more accessible and providing a mechanism for collateral use.
The Mechanics of Tokenization
At the core of Ondo’s tokenization model is the issuance of tokenized notes backed by actual stocks held by clearing brokers. Unlike other tokenized stock models that may face challenges with transfer restrictions or liquidity, Ondo’s tokens operate smoothly across digital wallets similar to stablecoins. This system requires Know Your Customer (KYC) verification only at the minting stage, allowing for seamless trading across decentralized finance (DeFi) platforms.
Instant Minting and the Investor Advantage
One of the standout features of Ondo’s model is the instant minting and burning of tokens. Investors can trade large sums—sometimes in the millions—at prices that closely mirror traditional brokerage accounts. Notable examples include an investor who minted $17 million worth of Google stock tokens. This capability has drawn interest from diverse regions, including Africa, Southeast Asia, and Latin America, along with crypto-savvy investors eager to shift between digital currencies like Bitcoin and traditional stocks while maintaining complete control over their assets.
Challenges of Liquidity and Market Hours
Despite its advantages, the tokenized stock market faces challenges, particularly concerning liquidity on weekends. Traditional financial markets operate Monday through Friday, while crypto markets and DeFi platforms are active 24/7. This mismatch complicates hedging strategies for market makers in the tokenized stock space.
De Bode acknowledges this issue and expresses optimism about potential changes in traditional markets. He notes that if the NYSE and Nasdaq move towards 24/7 trading for tokenized stocks, it could eliminate this bottleneck and synchronize market operations across both traditional and decentralized platforms.
Future Aspirations for Ondo
Looking ahead, Ondo’s ambitions include expanding its global market platform by integrating more assets and blockchain technologies. De Bode highlights that Ondo is not out to compete directly with existing exchanges; rather, they aim to empower these platforms, drawing an analogy to Tether in the cryptocurrency space, but for stocks.
By fostering this innovation within the financial ecosystem, Ondo Finance is paving the way for the next generation of equity trading, where the advantages of decentralized finance can blend seamlessly with the robust infrastructure of traditional markets.
