Ondo Finance is preparing to launch a US stock tokenization product on Solana, with results expected in early 2026.

Ondo Finance announces an ambitious plan: to launch tokenized US stocks and exchange-traded funds (ETFs) on the Solana blockchain in early 2026. This marks a significant transformation for this RWA (Real-World Asset) tokenization platform—from focusing on US Treasuries and money market funds to expanding into the equity market, with qualified custodial structures supporting 24/7 on-chain trading and transfers.

Breaking the Traditional Market Time Restrictions

The traditional US stock market operates only about 6.5 hours per trading day (9:30 AM to 4:00 PM Eastern Time), with limited liquidity and wider spreads before and after trading hours. Ondo’s tokenized stocks will break through this limitation, enabling true full-cycle 24/7 trading and near real-time blockchain settlement.

The high throughput (thousands of transactions per second) and extremely low transaction fees (usually just a few cents per transaction) of the Solana blockchain make frequent trading and small transfers economically feasible, whereas Ethereum’s historically higher gas fees pose a barrier.

Qualified Custodial Model is at the core of Ondo’s approach. Unlike synthetic derivatives or CFDs, these stocks are held by qualified custodians holding actual underlying assets, ensuring each token corresponds to real equity or ETF shares, not derivative exposure.

Ondo’s RWA Footprint and Market Foundation

To understand Ondo’s ambitions in stock tokenization, it’s important to recognize its established position in fixed income tokenization products.

USDY (USD Yield Token) is the flagship product, offering tokenized exposure to US short-term Treasuries and bank demand deposits, with assets under management exceeding $500 million since launch. OUSG provides institutional investors with tokenized access to short-term US government bonds, with blockchain-based transfer and settlement capabilities.

The company has successfully addressed securities registration requirements, established custodial relationships with traditional financial institutions, and built necessary compliance infrastructure. Its experience deploying USDY on Solana (also available on Ethereum) provides a technical and network foundation for expanding into stocks.

Long-Term Regulatory Approval Timeline

The early 2026 schedule reflects the substantial regulatory approval process required for tokenized US stocks and securities.

Securities registration is the main hurdle—tokenized stocks and ETFs clearly qualify as securities and must be registered with the SEC or qualify for exemptions. Transfer agent rules dictate how ownership records are maintained; Ondo must register as a transfer agent or partner with registered entities. Broker-dealer requirements may apply depending on distribution and trading methods. Custody rules demand that qualified custodians meet strict operational, financial, and insurance standards. AML/KYC compliance requires robust customer identification and anti-money laundering monitoring, which is challenging given blockchain’s pseudo-anonymity. Accredited investor restrictions may initially limit issuance to qualified or accredited investors before opening to retail investors.

How the Technology Infrastructure Supports 24/7 Trading

Achieving 24/7 trading of tokenized stocks supported by qualified custodians involves complex technical infrastructure.

Custodial structure may involve qualified custodians (like BNY Mellon, State Street, or US banks) holding actual stock certificates or account positions, while creating tokens on Solana to represent ownership.

Minting and redemption mechanisms allow authorized participants or Ondo itself to create new tokens when purchasing underlying assets and redeem tokens when selling, maintaining a 1:1 backing ratio.

Intra-day pricing references real-time stock prices from traditional exchanges to ensure market discovery. Off-hours pricing relies on previous close prices or fair value estimates until markets reopen, creating potential arbitrage opportunities.

On-chain settlement can be completed within seconds to minutes, much faster than traditional T+1 settlement, though underlying custody transfers still depend on traditional settlement timelines.

Corporate actions (dividends, splits, mergers, rights issues) require automated smart contract logic or manual intervention to proportionally distribute proceeds to token holders. Voting rights introduce complexity—blockchain addresses may not meet proxy voting requirements, necessitating additional verification or delegation mechanisms.

Who Will Benefit Most

While retail investors may be satisfied with commission-free trading and familiar interfaces offered by traditional brokers, several niche markets have urgent needs:

International investors face time zone barriers; 24/7 trading eliminates this issue. Crypto-native users holding digital assets can more easily access traditional stock exposure without banks or brokers. DeFi integration enables tokenized stocks to serve as collateral in lending protocols or liquidity in AMMs, opening new financial strategies. Fragmented ownership becomes economically viable—low transaction costs allow dollar-based fractional investing rather than whole shares, especially attractive for high-priced stocks like Berkshire Hathaway Class A or Amazon. Algorithmic trading and systematic strategies benefit from API-based blockchain access and continuous trading, enabling automated execution.

Competitive Landscape

Ondo enters an increasingly crowded tokenized securities space, facing both existing players and new entrants.

Some platforms already offer on-chain tokenized stocks, including major tech firms and index products. DeFi protocols provide synthetic stock exposure without qualified custody, with different risk-return profiles. Traditional asset managers currently focus on money market funds and fixed income rather than equities. Some specialized infrastructure providers support securities tokenization and have partnered with multiple institutions. There are SEC-registered tokenized securities platforms, though with limited product ranges.

Ondo’s advantages include its established RWA platform, Solana’s technical infrastructure, institutional relationships from fixed income products, and regulatory experience. Competition comes from both crypto-native players and traditional financial institutions.

New Dynamics in Market Structure

Tokenized stocks operating alongside traditional markets will reshape market structure.

Liquidity fragmentation: Order flow disperses across traditional exchanges (NYSE, NASDAQ) and on-chain markets, potentially reducing depth and widening spreads in both venues. Price discovery: Efficient arbitrage is needed to maintain price parity between traditional and tokenized versions. Arbitrage opportunities: Price differences across locations, after-hours trading, and varying liquidity conditions create arbitrage potential. Market maker challenges: Liquidity providers must manage inventories across traditional and on-chain markets while handling custody and settlement complexities. Qualified participants (like ETF creation/redemption participants) facilitate arbitrage and liquidity through special permissions to mint and redeem tokens.

Success heavily depends on the liquidity scale of the tokenized market—whether it can truly replace traditional trading or remains a niche application.

Risks and Challenges

Multiple risks could hinder successful launch or limit post-launch adoption:

Regulatory rejection or delays are primary risks—SEC could deny approval, require significant modifications, or impose restrictions. Custody and counterparty risk exists if qualified custodians face financial difficulties, operational failures, or fraud. Smart contract vulnerabilities could lead to theft or loss of tokenized stocks due to code flaws. Market adoption remains uncertain—investors may prefer familiar traditional brokers over new blockchain options. Liquidity challenges could cause wide spreads and poor execution quality. Pricing and oracle risks emerge when underlying markets are closed but tokens continue trading, risking mispricing. Corporate actions are complex to automate and may require manual intervention. Regulatory changes could impose new restrictions on tokenized securities or related products.

Key Success Factors

Ondo’s success hinges on multiple factors. Adoption may come more from institutions than retail investors—hedge funds and prop trading firms can leverage 24/7 markets for risk management; international asset managers can access US stocks during local hours; crypto funds can diversify more easily; family offices can benefit from programmable and DeFi integrations. However, pension funds and insurers may face regulatory and operational hurdles in the short term.

Long-term, success depends on building sufficient liquidity, transparent pricing mechanisms, clear legal frameworks, and investor confidence—all requiring time and market validation. With its existing fixed income footprint and upcoming stock plans, Ondo aims to evolve from an RWA pioneer to an RWA ecosystem architect.