Ondo Finance has teamed up with financial technology giant Broadridge to give holders of tokenized stocks and exchange-traded funds (ETFs) the ability to participate in proxy voting.
Broadridge has built a Web3-enabled relay system where tokenholders connect their crypto wallet to Broadridge’s ProxyVote platform, submit their voting preference, and Ondo’s issuer then votes the real shares accordingly, with the entire process recorded onchain for transparency, according to a Tuesday announcement.
“By working with Broadridge, we are enabling holders of our on-chain tokenized stocks to access governance and voting capabilities, with all the additional benefits on-chain tokens provide,” Matthieu de Vergnes, global head of institutional at Ondo Finance, said.
Proxy voting is when a shareholder authorizes someone else to vote on corporate matters on their behalf. It has long been a standard feature of traditional equity ownership, but tokenized stocks have largely lacked it. The Broadridge integration addresses this gap, letting investors sign in via their crypto wallets, confirm their holdings and submit votes.
Related: SEC ‘on the cusp’ of onchain tokenized securities exemption: Atkins
Tokenized stocks hit $1.15 billion
Tokenized stocks have surged to $1.15 billion in distributed value, up 25.46% over the past 30 days, according to data from RWA.xyz. Monthly transfer volume stands at $2.27 billion, with over 217,000 holders, up 9.26% in the last month alone.
Tesla, NVIDIA, and S&P 500-linked products are among the most prominent assets by value, alongside Circle Internet and Strategy-linked tokens.
Tokenized stocks continue to grow. Source: RWA.xyz
Ondo, which claims roughly 70% of the tokenized stock market with over $700 million in total value locked, offers its products across Solana (SOL), Ethereum (ETH) and BNB Chain (BNB). The tokens are backed by the corresponding stocks or ETFs.
Related: UK plans payments rule changes for stablecoins, tokenized deposits
Franklin Templeton, Ondo bring tokenized ETFs to crypto wallets
Last month, Franklin Templeton and Ondo Finance announced a partnership to bring tokenized versions of Franklin’s ETFs onchain, giving investors access through crypto wallets rather than traditional brokerage accounts. The initial offering covers five funds spanning US equities, fixed income, and gold, available across Europe, Asia-Pacific, the Middle East and Latin America, with US access pending regulatory clarity.
Meanwhile, Binance has listed 10 tokenized assets from Ondo Global Markets on its Binance Alpha platform, including tokens tracking Apple, Nvidia and the Invesco QQQ ETF.
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