Broadridge Partnership Enables Ondo to Offer Proxy Voting for Tokenized Securities
Holders of tokenized stocks now have the capability to engage in corporate governance activities, bridging a significant divide that has existed between blockchain-based securities and traditional market instruments.
In a collaboration with financial technology powerhouse Broadridge, Ondo Finance has introduced the capability for investors who hold tokenized stocks and exchange-traded funds (ETFs) to exercise their proxy voting rights.
The infrastructure developed by Broadridge features a Web3-compatible relay mechanism that allows token owners to link their cryptocurrency wallets to Broadridge's ProxyVote platform, register their voting decisions, which then enables Ondo's issuer to cast votes on the underlying shares in accordance with these preferences, while the complete process is documented on the blockchain to ensure transparency, as stated in an announcement made on Tuesday.
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
The concept of proxy voting involves a shareholder delegating authority to another party to cast votes on corporate issues on their behalf. While this mechanism has been a fundamental component of conventional equity ownership for decades, tokenized stock products have predominantly been missing this functionality. The new integration with Broadridge resolves this shortcoming, allowing token holders to authenticate themselves using their cryptocurrency wallets, verify their token ownership and cast their votes.
Tokenized stocks hit $1.15 billion
The aggregate distributed value of tokenized stocks has climbed to $1.15 billion, representing a 25.46% increase over the past 30 days, based on statistics from RWA.xyz. The monthly transfer volume currently sits at $2.27 billion, with the number of holders exceeding 217,000, marking a 9.26% rise within just the last month.
Among the most significant assets by value are products linked to Tesla, NVIDIA, and the S&P 500, in addition to tokens associated with Circle Internet and Strategy.
Commanding approximately 70% of the tokenized stock marketplace with total value locked exceeding $700 million, Ondo makes its products available on Solana (SOL), Ethereum (ETH) and BNB Chain (BNB). These digital tokens maintain backing by their corresponding stocks or ETFs.
Franklin Templeton, Ondo bring tokenized ETFs to crypto wallets
In the previous month, a partnership between Franklin Templeton and Ondo Finance was revealed to introduce blockchain-based versions of Franklin's ETFs, providing investors with the ability to access these instruments through cryptocurrency wallets instead of conventional brokerage accounts. The first wave of offerings includes five funds that cover US equities, fixed income, and gold, with availability spanning Europe, Asia-Pacific, the Middle East and Latin America, while access for US investors awaits greater regulatory clarity.
Separately, Binance has added 10 tokenized assets from Ondo Global Markets to its Binance Alpha platform, featuring tokens that track Apple, Nvidia and the Invesco QQQ ETF.