Ondo Finance has launched tokenized representations of CRCL (Circle) stocks and SPY ETFs based on DTC Tokenized Entitlements—digital “twins” of securities held in DTC, the organization that provides clearing and settlement services for the vast majority of U.S. exchange transactions. This is the first instance where tokenized stocks are backed by precisely this mechanism.
The CRCLon and SPYon tokens are fully backed by underlying assets that remain in DTC custody throughout the entire process. Ondo is connected to the network via Alpaca Markets. The company has become one of more than a dozen participants in DTCC’s largest tokenization initiative—joining other participants such as BlackRock, JPMorgan, Goldman Sachs, Nasdaq, and NYSE.
According to Ondo CEO Ian De Boe, the company’s infrastructure is designed to be compatible with institutional market infrastructure rather than competing with it.