Essential Insights
Ondo is set to launch tokenized US stocks and ETFs on Solana in early 2026.
The tokens are secured by custody. The underlying securities are held by US-registered broker-dealers, providing economic exposure to onchain holders without shareholder rights.
Minting and redemption processes are structured to maintain token backing to real assets during 24/5 hours, while transfers and trading will operate around the clock.
Compliance measures are designed to accompany the asset, utilizing Solana Token Extensions like Transfer Hooks to uphold eligibility and transfer limitations.
Ondo’s main pitch is that investors should have the opportunity to hold traditional financial exposures, like Treasurys, money market funds, and US equities, in the same wallet as stablecoins, facilitating onchain asset movement.
Recently, the company has announced plans to introduce tokenized US stocks and exchange-traded funds (ETFs) on Solana, targeting an early 2026 launch to enhance its product offerings on various blockchains.
The concept is simple: Hold a “stock token” in your wallet, trading or transferring that exposure on Solana with significantly faster settlement compared to traditional market systems, even outside US exchange hours.
Did you know? Ondo Finance recently launched its USDY (“US Dollar Yield”) token in August 2023, described as a tokenized note backed by US Treasurys and bank deposits, offering 5% APY at launch.
What is Ondo planning for Solana?
Ondo’s Global Markets initiative already provides onchain access to over 100 US stocks and ETFs, with plans for “hundreds more” listed in the roadmap. Solana is targeted as the next supported network.
The focus of the Solana rollout is to expand the current catalog for availability on Solana by early 2026, featuring tokenized stock and ETF trading available 24/7 and with immediate settlement.
With around $365 million already issued onchain, this will enhance Ondo’s current tokenization business. Moving the product to Solana follows a prior launch on BNB Chain.
According to Ondo’s disclosures, the tokens offer economic exposure to publicly traded stocks and ETFs, inclusive of dividend benefits, while the underlying assets are held at US-registered broker-dealers, along with cash in transit.
The holder’s stake pertains to economic returns, while shareholder rights for the underlying securities remain with the custodial structure. In essence, financial performance is managed onchain while formal ownership stays offchain. This is the fundamental structure Ondo aims to implement on Solana.
Understanding the Structure: Custody, Minting, and Redemption
To maintain credibility, stock tokens must stay linked to real securities.
Ondo’s model follows a traditional custody-backed approach. Underlying US stocks and ETFs are maintained with one or more US-registered broker-dealers, along with any interim cash during trades or transfers. The tokens displayed onchain reflect economic exposure to this asset pool, rather than a synthetic product that may diverge from actual holdings.
This is where minting and redemption come into play. The token supply is designed to expand and shrink as users mint and redeem tokens against the underlying assets, avoiding a fixed pool available for free trading on secondary markets.
Ondo claims that users can mint and redeem tokens twenty-four hours a day, five days a week, while the tokens themselves are transferable among crypto wallets and applications 24/7/365. Thus, creation and redemption align with traditional market hours, while transfers and trading function within crypto’s always-on framework.
Pricing is another critical element. For a token to accurately track total economic return, it cannot simply replicate the last trading share price. Dividends and corporate actions must also be accounted for.
Ondo has indicated that Chainlink will serve as the official oracle layer, discussing custom feeds for each tokenized equity that will account for both price changes and events like dividend distribution. This ensures protocols, trading platforms, and risk systems have a reliable reference for each token’s value at all times.
The technical aspects of Solana also play a role here. Tokenized equities require built-in eligibility checks and transfer governance.
Solana’s Token Extensions feature transfer hooks, which execute each time a token is moved. This allows Ondo to integrate conditions directly into the token, such as holder eligibility, region exclusions, and actions for attempts to send it to specific smart contracts. These checks accompany the asset throughout its ecosystem journey.
Why Choose Solana?
For Ondo, making tokenized US stocks relatable for everyday crypto enthusiasts points to Solana as an ideal choice.
The network boasts a substantial retail user base, swift confirmation times, and a trading app culture characterized by low fees and immediate execution. For investors desiring an equity-like experience within a wallet filled with stablecoins and meme tokens, these attributes are essential. This context positions Ondo’s plan to offer its tokenized stocks and ETFs on Solana for early 2026 successfully.
There are also regulatory and risk considerations. These tokens are tied to regulated underlying assets, and as Ondo’s disclosures clarify, holders aren’t made direct shareholders.
Thus, jurisdiction filters, investor eligibility checks, and set rules governing token movement are critical. The product’s viability hinges on consistent enforcement of these constraints, rather than relying on individual applications or exchanges to interpret them independently.
Solana’s Token Extensions are engineered with real-world assets in perspective. The Transfer Hook extension enables each token to execute custom logic with every transfer. For instance, it can validate if both the sender and receiver can hold the asset, or prohibit transfers to specific smart contracts entirely.
By embedding rules directly into the token itself, Ondo can ensure compliance and focus on enhancing coverage and user experience.
Did you know? In the first half of 2025, Solana recorded around 3 million to 6 million daily active addresses, with peaks s exceeding 7 million on certain days, while average transaction fees hovered around $0.00025 per transaction, with blocks produced approximately every 400 milliseconds.
User Experience (When Live on Solana)
The user experience is expected to resemble that of a regulated investment product more than a typical DeFi token.
Initially, eligibility will be assessed. Ondo’s Global Markets line is aimed at qualifying non-US investors, utilizing jurisdiction filters and eligibility checks. Before proceeding to “buy,” users must validate their permitted region and meet applicable criteria.
The onboarding process may feel akin to setting up a brokerage account rather than merely connecting a wallet to a decentralized exchange (DEX). Given that the tokens are fully backed by underlying stocks and ETFs with US-registered broker-dealers, alongside cash in transit, access needs to comply with strict regulatory standards.
This includes Know Your Customer (KYC) processes, custody requirements, and other compliance obligations.
Once approved, the user flow will transition to a more crypto-centric format:
You fund a Solana wallet with a supported payment asset, often stablecoins.
You select a ticker and then buy or mint the tokenized version. Minting and redemption will operate around the clock, while wallet and application transfers can continue 24/7/365.
Your position is held like any other token in your wallet, offering economic exposure, including dividends, but without the rights associated with actual stocks or ETFs.
Advantages and Limitations
The potential appeal is evident. If Ondo succeeds in enabling stock and ETF exposure to behave like standard tokens on Solana, users might enjoy quicker settlements and greater flexibility in position management compared to conventional brokerage processes.
Despite US markets shifting to T+1 settlement, the difference between a day and a few seconds is significant, particularly for those looking to shift value or use positions within onchain applications without awaiting trade completions.
However, certain limits remain inherent in the design. Ondo’s disclosures explicitly state that holders receive only economic exposure. The actual shares and their associated shareholder rights belong with the regulated custody and brokerage structure that holds the securities. Access is subject to jurisdiction and investor eligibility constraints due to the regulated nature of the backing assets.
Market dynamics provide another layer of dependency. To ensure the token accurately mirrors the real asset, sufficient liquidity is needed, along with aligned pricing and smooth corporate actions, including dividends.
For this reason, Ondo emphasizes that broker-dealer custody and a specialized oracle system are essential, not just optional features. Any failure within the custody link or the oracle layer could compromise the promised stock-like behavior onchain, independent of how seamless the Solana user experience may seem.
Did you know? T+1 settlement entails that a trade settles, with cash and securities officially exchanged, one business day post-trade. For instance, if you purchase a stock on Monday, settlement typically occurs on Tuesday, barring market holidays. In the US, this became the standard for most securities on May 28, 2024, replacing the former T+2 cycle.
What to Monitor Before Launching on Solana
Leading up to the early 2026 target, key indicators will include launch specifics that clarify user eligibility, the fidelity with which tokens track real instruments, and the safeguards in place in case of failures.
Here’s a concise checklist to watch:
Launch lineup: Which stocks and ETFs will be available initially, and if Ondo will maintain the same custody-backed model as other platforms.
Access rules: How non-US eligibility, jurisdiction limitations, and KYC processes function, along with procedures for changes in user status.
Custody and backing: Where the underlying shares and ETFs are secured and the practicalities of minting and redemption.
Pricing and corporate actions: How Chainlink feeds manage both prices and events like dividends and splits.
Onchain controls: Whether Solana Token Extensions, such as Transfer Hooks, are implemented and the strictness of transfer regulations.
Lastly, anticipate scrutiny. Regulators and market structure organizations have warned that tokenized stock products may mislead investors since they frequently lack shareholder rights, and tokenization doesn’t eliminate their status as securities.
Such scrutiny will likely influence how strictly Ondo restricts access and how clearly it defines what holders do and do not possess.
