Ondo teams up with DTCC to launch the world’s first “digital twin” tokenized US stocks, with BlackRock and JPMorgan already onboard

Author: Ondo Finance

Compiled by: Deep Tide TechFlow

Deep Tide Brief: Ondo Finance became the first company to issue tokenized stocks based on DTCC-custodied securities. This means that, for the first time, on-chain stock tokens have the endorsement of traditional financial clearing infrastructure. Unlike earlier synthetic assets, the shares underlying these tokens are actually held in the DTCC—the clearing organization for the overwhelming majority of stock trading in the United States—which enables seamless conversion between traditional accounts and on-chain forms. This marks the moment Wall Street officially starts connecting DeFi with its own infrastructure, rather than building a parallel system from scratch.

Today, Ondo Finance launched the first batch of digital twin U.S. stock tokens generated from DTCC-based tokenization services. The securities backing these tokenized assets are held in the DTC (Depository Trust Company), which is responsible for clearing and settling the vast majority of U.S. securities trades. Through DTCC tokenization services, these tokenized interests share the same CUSIP coding and stock ticker symbols as the underlying securities, and can be delivered to DTC participant wallet addresses for use by customers such as Ondo.

Ondo has joined what is, to date, the largest DTCC tokenization project, with participating counterparties including BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and the New York Stock Exchange, among more than ten traditional finance and DeFi institutions. The project signifies that traditional finance and DeFi are moving toward interoperability, rather than operating in separate parallel systems.

In a statement, Ian De Bode, CEO of Ondo Finance, said: "Ondo is the only company that builds all paths for tokenizing U.S. securities at the same time. Today's collaboration with DTCC proves that the original intent behind Ondo's stock infrastructure design is to interoperate with institutional market infrastructure, not to compete with it. As the market for tokenized securities continues to evolve, Ondo hopes to play a leading role in bringing these assets to on-chain investors."

This project is an important milestone for DTCC tokenization services, and also enables Ondo to further deepen its role in U.S. capital market infrastructure as tokenized securities increasingly integrate into traditional market infrastructure.

Operation Mechanism

The underlying assets are Circle-listed shares (CRCL) and the SPDR S&P 500 ETF (SPY), which are represented on-chain as CRCLon and SPYon, respectively—Ondo stock tokens fully backed by their respective securities. Under this model, DTCC tokenization services generate the DTC tokenized interests for CRCL and SPY as digital twins of the underlying securities for the CRCLon and SPYon tokens. Ondo connects to this network via Alpaca Markets; Alpaca Markets connects Ondo to the DTC participant network. Securities held by DTC can be converted between traditional forms and tokenized forms, bringing greater flexibility, access to new liquidity pools, and enhanced digital-asset functionality through the digital twin structure. These added capabilities directly translate into enhanced utility for Ondo stock tokens traded on exchanges, in wallets, and on DeFi platforms across Ondo's global partner network. The underlying securities always remain within DTC's custodial infrastructure.

DTCC President and CEO Frank La Salla said: "DTCC demonstrates that we can apply the same institutional-grade rigor as traditional assets to tokenization, while continuing to maintain the integrity and resilience of global financial markets. DTCC's tokenization services will institutionalize the tokenized market from day one and will become a key driver of future digital ecosystems, while reinforcing trust, security, and scale in the digital world."

About Ondo Finance

Ondo Finance is a blockchain technology company focused on tokenizing real-world assets and bringing institutional-grade financial products onto the blockchain. By connecting traditional finance with decentralized infrastructure, Ondo aims to make capital markets more accessible, more transparent, and more efficient.