Ondo Finance's Ambitious Plan to Introduce Tokenized US Stocks on Solana

Ondo Finance is gearing up for an exciting launch in early 2026, aimed at providing tokenized US stocks and exchange-traded funds (ETFs) on the Solana blockchain. This initiative will enable investors to enjoy greater flexibility and speed in trading compared to traditional markets, while ensuring that all assets are backed by real securities held with US-registered broker-dealers. This article explores the details of Ondo's plans, the mechanics behind tokenization, and the advantages and limitations of such a product.

Key Takeaways

Ondo intends to launch tokenized US stocks and ETFs on Solana in early 2026.
These tokens will be backed by custody, meaning the underlying assets are held by US-registered broker-dealers, while blockchain holders gain economic exposure without shareholder rights.
Minting and redemption processes will operate 24/5 to maintain a direct link to real assets, while transfers and trading will be available around the clock.
Compliance will follow the asset using Solana Token Extensions, like Transfer Hooks, to manage eligibility and transfer limitations.

How Ondo Finance plans to bring tokenized US stocks to Solana

Ondo Finance's Vision

Ondo is preparing to roll out tokenized US stocks and ETFs on Solana in early 2026. These tokens will be custody-backed, holding the underlying securities with US-registered broker-dealers while allowing holders to gain economic exposure, without actual shareholder rights.

The minting and redemption of these tokens will be designed to keep them tied to real assets five days a week, while trading and transferring will be available 24/7. To ensure compliance, Ondo will utilize Solana Token Extensions like Transfer Hooks to enforce necessary restrictions.

Ondo's main value proposition is to allow investors to hold traditional financial instruments — such as US Treasurys and money market funds — in the same wallet used for stablecoins, thereby moving those assets onto the blockchain.

Diagram explaining the process of tokenized US stocks

Did you know? Ondo Finance introduced its USDY (“US Dollar Yield”) token in August 2023, a tokenized note backed by US Treasurys and bank deposits, initially offering a 5% annual percentage yield (APY).

What is Ondo Bringing to Solana?

Ondo's Global Markets product presently offers on-chain exposure to over 100 US stocks and ETFs, with plans to add hundreds more. By targeting Solana for its next rollout, Ondo aims to provide a trading experience that operates continuously and settles rapidly.

With approximately $365 million already issued on-chain, expanding to Solana represents a significant growth step for Ondo's existing tokenization model after a prior expansion to BNB Chain. The tokens will grant economic exposure to publicly traded stocks and ETFs, inclusive of dividend benefits, while remaining held with US-regulated broker-dealers.

How Tokenization Works: Custody, Minting, and Redemption

For stock tokens to maintain credibility, they must remain connected to real securities. Ondo's strategy employs a custody-backed model, where US stocks and ETFs are managed by registered broker-dealers, alongside any cash between trades. The tokens on-chain reflect this economic exposure rather than function as detached synthetic products.

Minting and redemption will allow the token supply to adjust based on user activity, ensuring alignment with the underlying assets rather than leaving a set supply for free trading. Ondo states that users will be able to create and redeem tokens during market hours, while transfers remain active around the clock.

Pricing is crucial; thus, the token must reflect total economic return, incorporating dividends and corporate actions. Ondo has partnered with Chainlink to develop the necessary reference feeds for tokenized equities.

Additionally, Solana's technical capabilities are essential in creating tokenized equities that require eligibility checks and transfer rules.

Why Choose Solana?

Ondo’s focus on Solana makes sense as it has a large retail audience and offers fast transaction times, low fees, and a trading culture that appeals to crypto users. These attributes make it an ideal platform for anchor-like equity experiences, aligning seamlessly with stablecoins and other crypto assets.

Regulatory concerns also play a role in the decision; these tokens are linked to regulated assets without granting shareholder rights, necessitating jurisdiction filters and clear transfer rules. Solana's Token Extensions facilitate embedding such essential compliance features directly into the token.

Did you know? In the first half of 2025, Solana had between 3 to 6 million daily active addresses, reaching over 7 million on some days, with transaction fees averaging around $0.00025.

User Experience Once Live on Solana

When launched, the user experience is anticipated to resemble a regulated investment product rather than a standard DeFi token.

Eligibility: Ondo's Global Markets will require users to qualify based on region and regulatory criteria, akin to opening a brokerage account rather than just connecting a wallet to a decentralized exchange.
Funding: Users will need to fund a Solana wallet with a supported payment asset, typically stablecoins.
Purchasing Tokens: Users can buy or mint tokens 24/5. Transfers and trading will continue uninterrupted within the ecosystem.
Holding Tokens: Even though users gain economic exposure, this does not equate to ownership of the stocks or ETFs, nor does it provide shareholder rights.

Advantages and Limitations

The potential benefits of Ondo's plan are clear. By making stock and ETF exposure function like standard tokens on Solana, users could enjoy faster settlement times and greater flexibility compared to ordinary brokerage systems.

However, limitations remain in the design. Holders will have economic exposure only, with shareholder rights retained by the custody structure. Access will also be governed by jurisdiction and investor eligibility, since the backing assets hinge on regulated frameworks.

Market mechanics introduce another dependency. For tokens to closely mirror real instruments, liquidity, price alignment, and corporate actions must flow smoothly — essential reasons Ondo emphasizes both broker-dealer custody and a robust oracle system.

Did you know? T+1 settlement means a trade is considered completed one business day after the trade date; a significant shift for securities trading in the US took place on May 28, 2024, moving from the T+2 standard.

What to Watch Before Launch

As we approach the anticipated launch in early 2026, key aspects to monitor include:

Launch Lineup: The initial selection of stocks and ETFs and whether Ondo will maintain its custody-backed approach.
Access Rules: Details on jurisdiction limits, eligibility, and KYC procedures will be critical to understand.
Custody and Backing: Clarity on how minting and redemption will operate in practice and the locations of actual holdings.
Pricing Mechanics: Evaluation of how Chainlink will manage pricing and corporate actions such as dividends.
On-chain Controls: Ensuring strict implementation of Solana Token Extensions and evaluating transfer restrictions.

Finally, expect regulatory scrutiny as tokenized stock products may confuse investors by lacking shareholder rights and raising legal questions, shaping how Ondo manages access and clarifies ownership rights for holders.