Ondo Finance has unveiled a new offering of tokenized stocks aimed at US investors. Its US subsidiary Oasis Pro TA, an SEC-registered transfer agent, tokenizes stocks held in custody as security entitlements, meaning the token holder has full ownership and voting rights in the underlying stocks.
This setup contrasts with its offshore product, where BVI-based Ondo Global Markets provides structured notes that aim to track the price of US listed stocks, but without direct ownership rights to the underlying stocks held in custody. These are often referred to as synthetics.
The offshore tokens have the benefit that token holders are only identified at issuance or redemption, in a similar manner to stablecoins, allowing the tokens to be used in DeFi trading. For now the US tokens will be a bit more restricted because the broker dealer, transfer agent and custodian have to comply with US regulations.
While Ondo claims this as a first, Dinari has had a similar offering, dShares, for roughly two years, initially offshore but with a structure that also supports US accredited investors. One differentiator is Ondo’s previously announced collaboration with Broadridge, which means token holders can cast their vote at AGMs via ProxyVote.com. The offshore version has similar functionality, but votes are not legally binding because those tokens are synthetic.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
