Ondo Partners with DTCC to Launch World's First "Digital Twin" US Stock Token, BlackRock and JPMorgan Already In
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Ondo Partners with DTCC to Launch World's First "Digital Twin" US Stock Token, BlackRock and JPMorgan Already In
This marks Wall Street officially beginning to connect to DeFi using its own infrastructure, rather than starting from scratch.
Navigating Web3 tides with focused insightsAuthor: Ondo Finance
Compiled by: TechFlow
TechFlow Insight: Ondo Finance becomes the first company to issue tokenized stocks based on DTCC-custodied securities, meaning on-chain stock tokens have backing from traditional financial clearing infrastructure for the first time. Unlike previous synthetic assets, the stocks behind these tokens are actually held at DTCC—the clearing institution for the vast majority of stock transactions in the US—and can be freely converted between traditional accounts and on-chain forms. This marks the formal beginning of Wall Street connecting to DeFi using its own infrastructure, rather than building a separate system from scratch.
Ondo Finance today launches the first batch of digital twin US stock tokens generated based on DTCC tokenization services. The securities anchored by these tokens are held at DTC (The Depository Trust Company), which is responsible for clearing and settling the vast majority of securities transactions in the United States. Through DTCC tokenization services, these tokenized interests share the same CUSIP codes and stock tickers as the underlying securities and can be delivered to DTC participant wallets for use by clients such as Ondo.
Ondo joins this largest tokenization project in DTCC's history, with participants including BlackRock, JPMorgan Chase, Goldman Sachs, Nasdaq, NYSE, and more than ten other traditional finance and DeFi institutions. This project marks that traditional finance and DeFi are moving towards interoperability, rather than establishing parallel systems independently.
Ondo Finance CEO Ian De Bode stated: "Ondo is the only company building all pathways for US securities tokenization simultaneously. Today's partnership with DTCC proves that Ondo's stock infrastructure was designed to interoperate with institutional market infrastructure, not to compete with it. As the tokenized securities market continues to evolve, Ondo expects 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 deepen its role in US capital market infrastructure as tokenized securities increasingly integrate into traditional market infrastructure.
How It Works
The underlying assets are Circle's listed stock (CRCL) and the SPDR S&P 500 ETF (SPY), represented on-chain as CRCLon and SPYon respectively—Ondo stock tokens fully backed by their respective securities. In this model, DTCC tokenization services generate DTC tokenized interests for CRCL and SPY, serving as digital twins of the underlying securities for CRCLon and SPYon tokens. Ondo accesses this network through Alpaca Markets, which connects Ondo to the DTC participant network. Securities held by DTC can be converted between traditional forms and tokenized forms, thereby bringing greater flexibility, access to new liquidity pools, and enhanced digital asset functionality through the digital twin structure. These additional features directly translate into enhanced utility for Ondo stock tokens on exchanges, wallets, and DeFi platforms within Ondo's global partner network. The underlying securities always remain within the DTC custody infrastructure.
DTCC President and CEO Frank La Salla stated: "DTCC proves that we can apply the same institutional-grade rigor to tokenization as traditional assets, while continuing to maintain the integrity and resilience of global financial markets. DTCC tokenization services will institutionalize the tokenized market from day one and will become a key enabler of the future digital ecosystem, while reinforcing trust, security, and scale in the digital world."
About Ondo Finance
Ondo Finance is a blockchain technology company focused on real-world asset tokenization and bringing institutional-grade financial products on-chain. By connecting traditional finance with decentralized infrastructure, Ondo is committed to making capital markets more accessible, transparent, and efficient.
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