Ondo Finance launched tokenized stocks backed by The Depository Trust Company infrastructure on July 16, marking the first use of DTC Tokenized Entitlements in tokenized securities. The ONDO token surged past $0.38 following the announcement, its first notable price movement in weeks. The launch integrates tokenized stocks directly into the same infrastructure Wall Street uses to settle nearly every U.S. stock trade, positioning Ondo as a bridge between decentralized finance and traditional capital markets.
Ondo Finance Launches DTCC-Backed Tokenized Stocks on July 16
Ondo Finance debuted the first tokenized stocks backed by DTC Tokenized Entitlements on July 16. These entitlements are generated through the DTCC Tokenization Service and carry the same CUSIP and ticker symbol as the underlying security, representing a direct, traceable link to the real stock rather than a synthetic copy.
The first two assets using this model are Circle's publicly listed stock (CRCL) and the SPDR S&P 500 ETF Trust (SPY), represented onchain as CRCLon and SPYon. Both are Ondo Stocks tokens fully backed by their underlying security.
DTC Tokenized Entitlements Enable Direct Infrastructure Connection
Under this model, the DTC Tokenized Entitlements tied to CRCL and SPY act as digital twins of the securities already backing Ondo's existing CRCLon and SPYon tokens. Ondo connects to this system through Alpaca Markets, which links Ondo into the DTC participant network.
The underlying securities never leave DTC's custody infrastructure. What moves is the tokenized entitlement, the digital twin, which can convert between traditional and tokenized forms and distribute across exchanges, wallets, and DeFi platforms in Ondo's partner network.
DTCC Tokenization Service Includes Major Financial Institutions
Ondo joins more than a dozen major TradFi and DeFi firms, including BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and NYSE, participating in DTCC's largest tokenization initiative to date. The DTCC Tokenization Service uses the same underlying DTC infrastructure that already clears and settles the majority of U.S. securities transactions.
"Ondo is the only company simultaneously building all pathways for U.S. securities tokenization," said Ian De Bode, CEO of Ondo Finance. "Today's initiative with DTCC demonstrates that Ondo Stocks infrastructure is purpose-built to interoperate with institutional market infrastructure, not to compete with it."
Frank La Salla, President and CEO of DTCC, framed the initiative as a signal of institutional readiness for tokenization. "DTCC demonstrated that we can apply the same institutional rigor to tokenization as we do for traditional assets while continuing to safeguard the integrity and resiliency of the global financial markets," La Salla said. "The DTCC Tokenization Service will institutionalize tokenized markets on day one and will be a critical enabler of the digital ecosystem of the future."
As the DTCC Tokenization Service continues its planned rollout later this year, Ondo expects to extend this model further, making tokenized stocks based on DTC Tokenized Entitlements accessible across its global partner network of exchanges, wallets, and DeFi platforms.
FAQ
What did Ondo Finance launch on July 16?
Ondo Finance launched tokenized stocks backed by DTC Tokenized Entitlements on July 16, marking the first use of this infrastructure for tokenized securities. The initial assets are CRCLon (Circle stock) and SPYon (SPDR S&P 500 ETF Trust).
How does Ondo Finance connect to DTC infrastructure?
Ondo Finance connects to the DTC participant network through Alpaca Markets. The underlying securities remain in DTC custody while tokenized entitlements, acting as digital twins, can convert between traditional and tokenized forms and distribute across Ondo's partner network of exchanges, wallets, and DeFi platforms.
