Ondo Finance to Launch Tokenized U.S. Stocks and ETFs on Solana in 2025

Ondo Finance is set to introduce tokenized U.S. stocks and ETFs on the Solana blockchain in early 2025, marking a notable development in the intersection of traditional securities and decentralized finance. This initiative promises 24/7 fractional trading enabled by blockchain technology but also raises significant questions around regulatory compliance, custody, and market dynamics.

What happened

Ondo Finance announced plans to launch tokenized versions of U.S. stocks and exchange-traded funds (ETFs) on the Solana blockchain in early 2025. These tokenized assets will be issued as Solana SPL tokens, a blockchain standard designed for efficient and scalable digital assets, allowing continuous trading beyond traditional market hours and fractional ownership. To back these tokenized securities, Ondo Finance has partnered with a regulated custodian tasked with holding the underlying stocks and ETFs. This partnership aims to ensure that the tokens represent actual ownership claims on the underlying assets.

Ondo Finance has also filed for regulatory compliance with the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These filings indicate a proactive approach to aligning the offering with U.S. securities laws, although no final regulatory approvals or rulings have been publicly disclosed as of December 2025. The choice of Solana as the blockchain infrastructure is attributed to its high throughput capabilities and low transaction costs, which Ondo Finance suggests will enhance liquidity and accessibility compared to platforms like Ethereum.

The company has received backing from major decentralized finance (DeFi) investors and has prior experience launching fixed income token products. However, the specific ETF issuers or stock providers partnering with Ondo Finance have not been publicly named, limiting clarity on the scope and liquidity of the tokenized offerings. Industry analysts have noted that using a regulated custodian may help address regulatory and investor protection concerns, though the regulatory environment for secondary trading of tokenized securities on blockchain platforms remains unsettled.

Why this matters

Ondo Finance’s initiative could represent a structural shift in how U.S. stocks and ETFs are accessed and traded. By leveraging blockchain technology, the platform aims to democratize investment opportunities through fractional ownership and 24/7 trading, features not available in traditional equity markets constrained by fixed trading hours and minimum share sizes. This could lower barriers to entry for retail investors and potentially improve liquidity by enabling continuous market participation.

The use of Solana’s scalable and low-cost blockchain infrastructure may reduce the friction and transaction costs historically associated with tokenized securities on other platforms, such as Ethereum. This technological choice could make tokenized stock trading more viable and attractive for a broader range of investors.

From a regulatory perspective, Ondo Finance’s engagement with the SEC and FINRA highlights the complex legal environment surrounding digital securities. The involvement of a regulated custodian to hold the underlying assets addresses a key concern about ensuring that token holders have enforceable claims on real securities, which is fundamental to investor protection and market integrity.

However, the broader implications for market structure—including potential impacts on traditional market makers, liquidity providers, and existing trading venues—are not yet clear. If tokenized stocks gain traction, they could complement or disrupt current liquidity pools and trading mechanisms, with consequences for price discovery and market efficiency.

What remains unclear

Despite the confirmed plans, several critical details remain undisclosed or unresolved. Notably, the identities of the specific ETF issuers and stock providers involved have not been made public, limiting insight into the range and liquidity of tokenized assets that will be available.

The regulatory framework for secondary trading of tokenized securities on blockchain platforms is still evolving, with no definitive SEC or FINRA guidance on how such trading will be supervised or integrated with existing market regulations. This regulatory uncertainty extends to investor protections, including custody arrangements, redemption rights, and dispute resolution mechanisms, which have not been fully detailed by Ondo Finance.

Additionally, there is no publicly available information on the audit processes or transparency measures that will verify the backing of tokens by actual securities. The expected liquidity and trading volumes for these tokenized stocks and ETFs are projections without precedent, meaning their market impact remains speculative.

Finally, how retail and institutional investors will respond to the availability of tokenized securities—whether they will adopt these products broadly or approach them with caution—is an open question. Trust in custodianship, regulatory clarity, and investor education will likely play significant roles in adoption rates.

What to watch next

Disclosure of specific ETF issuers and stock providers partnering with Ondo Finance, which will clarify the scope and liquidity of tokenized offerings.
Progress and outcomes of Ondo Finance’s regulatory filings with the SEC and FINRA, including any formal approvals or conditions imposed.
Details on custody arrangements, audit procedures, and investor protection frameworks to assess the robustness of asset backing and legal safeguards.
Market adoption metrics and trading volumes once the platform launches, providing empirical data on liquidity and investor behavior.
Regulatory developments concerning secondary trading of tokenized securities on blockchain platforms, which will shape the operational environment and compliance requirements.

Ondo Finance’s planned launch of tokenized U.S. stocks and ETFs on Solana presents a potentially transformative innovation in market accessibility and liquidity. However, significant uncertainties remain around regulatory approval, custody arrangements, and market adoption. The coming months will be critical in determining whether this initiative can navigate these challenges and deliver on its promise of democratized, frictionless securities trading.

Source: https://www.coindesk.com/business/2025/12/15/ondo-finance-to-offer-tokenized-u-s-stocks-etfs-on-solana-early-next-year. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.