Ondo Adds Proxy Voting to Tokenized Stocks as Platform TVL Tops $1B

Ondo Finance has partnered with shareholder-communications giant Broadridge to bring proxy voting and corporate disclosures to holders of tokenized equities, addressing the governance gap that has kept most on-chain stock products limited to price exposure. The rollout covers more than 250 tokenized stocks and ETFs and lands alongside Ondo’s first U.S. custodial security offerings — BlackRock’s iShares Core S&P 500 ETF (IVV) and Micron Technology (MU) — minted 1:1 on Ethereum.

The integration runs through Broadridge’s ProxyVote system, a Web3-enabled layer of infrastructure that already serves more than 200 million investors across banks, broker-dealers, and every publicly traded U.S. company, ETF and mutual fund, according to a post from Ethereum Institutional on X. Wallet holders can now link directly to that network, submit votes and receive company communications in a workflow that mirrors a traditional brokerage account rather than a synthetic price-tracking token.

Custody stays off-chain, entitlement moves on-chain

The structural design separates custody from representation. Underlying IVV and MU shares remain inside the existing U.S. custody and clearing system, held through regulated financial institutions and DTCC infrastructure rather than being recorded natively on a blockchain.

Oasis Pro Transfer Agent, an SEC-registered transfer agent, issues Ethereum-based entitlement tokens backed one-for-one by those shares. That means individual companies don’t need to build proprietary blockchain shareholder-record systems — Ethereum handles the digital representation while the traditional financial system retains custody of the actual securities, a design Ethereum Institutional says makes scaling tokenization to additional names materially easier.

Market share concentrated near 50%

Industry estimates put the total tokenized equity market at roughly $1.6 billion to $2 billion, with Ondo controlling close to half of it. Ondo’s own Global Markets platform has already surpassed $1 billion in total value locked across hundreds of tokenized U.S. stocks and ETFs, per the reporting.

Adding voting rights and disclosure access narrows the gap between these tokens and traditional equity ownership at a time when institutions have been the primary buyers of tokenized-stock products but have wanted governance rights, not just synthetic price exposure, as part of the package.

Access still restricted, competition building

Distribution is not yet global. The new custodial securities are initially limited to eligible non-U.S. investors accessing them through regulated broker-dealers and custodians, with geographic and compliance restrictions still governing onboarding.

Ondo isn’t operating unchallenged. Robinhood, Securitize and Binance’s bStocks initiative are each building tokenized-equity platforms under different legal frameworks, setting up a competitive race over which custody and transfer-agent model becomes the default rail for on-chain shareholder rights.