Author: Ondo Finance
Compiled by: Deep Tide TechFlow
Deep Tide Guide: Ondo Finance has become the first company to issue tokenized stocks based on DTCC-custodied securities, meaning that on-chain stock tokens for the first time have the backing of traditional financial clearing infrastructure. Unlike previous synthetic assets, the actual stocks backing these tokens are custodied at DTCC—the clearinghouse for the vast majority of U.S. stock trades—and can be freely converted between traditional accounts and on-chain forms. This marks the official beginning of Wall Street connecting to DeFi using its own infrastructure, rather than building a parallel system from scratch.
Ondo Finance today launched the first batch of digital twin U.S. stock tokens generated via DTCC's tokenization services. The securities underpinning these tokens are custodied at DTC (The Depository Trust Company), which clears and settles the majority of U.S. securities transactions. Through the DTCC Digital Assets platform, these tokenized entitlements share the same CUSIP and ticker symbol as the underlying securities and can be delivered to DTC participant wallets for use by clients like Ondo.
Ondo has joined this historic DTCC tokenization initiative, the largest of its kind, with participants including over a dozen traditional finance and DeFi institutions such as BlackRock, J.P. Morgan, Goldman Sachs, Nasdaq, and NYSE. This project signifies that traditional finance and DeFi are moving towards interoperability rather than building separate, parallel systems.
Ian De Bode, CEO of Ondo Finance, stated: "Ondo is the only company building all pathways to tokenize U.S. securities. Today's collaboration with DTCC proves that Ondo's stock infrastructure was designed from the outset to interoperate with institutional market infrastructure, not 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 is a significant milestone for DTCC's Digital Assets services and allows Ondo to deepen its role within U.S. capital market infrastructure as tokenized securities become increasingly integrated with traditional market infrastructure.
How It Works
The underlying assets are Circle's listed stock (CRCL) and the 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, the DTCC Digital Assets platform generates DTC tokenized entitlements for CRCL and SPY, serving as digital twins of the underlying securities for the CRCLon and SPYon tokens. Ondo accesses this network through Alpaca Markets, which connects Ondo to the DTC participant network. Securities held at DTC can be converted between their traditional form and tokenized form, enabling greater flexibility, access to new liquidity pools, and enhanced digital asset functionality through the digital twin structure. These additional capabilities translate directly into enhanced utility for Ondo Stock Tokens on exchanges, wallets, and DeFi platforms within Ondo's global partner network. The underlying securities remain within DTC's custody infrastructure at all times.
Frank La Salla, President and CEO of DTCC, said: "DTCC is demonstrating our ability to apply the same institutional-grade rigor to tokenized assets as we do to traditional assets, while continuing to uphold the integrity and resilience of the global financial markets. DTCC's Digital Assets platform will institutionalize the tokenized markets from day one and will be a key enabler of the future digital ecosystem, while reinforcing trust, security, and scale in the digital world."
About Ondo Finance
Ondo Finance is a blockchain technology company focused on real-world asset tokenization, bringing institutional-grade financial products on-chain. By bridging traditional finance with decentralized infrastructure, Ondo is dedicated to making capital markets more accessible, transparent, and efficient.
