DeFi protocol Ondo Finance is experiencing a surge in its token’s value this week following the introduction of tokenized versions of U.S. stocks and ETFs on the Ethereum blockchain. This increase is also in alignment with the broader crypto market, largely influenced by speculation surrounding a potential rate cut by the Federal Reserve in the coming week. Currently, the ONDO token has seen an impressive rise of nearly 9% over the last 24 hours, reaching a price of $1.09, with a notable 17.51% increase in the past week.
Ondo Introduces Tokenized U.S. Stocks and ETFs on Ethereum
The movement towards tokenization is gaining momentum. “This time feels distinct, primarily due to the abundant stablecoin liquidity and the genuine adoption of on-chain technology. DeFi is now a reality, unlike in previous years. Therefore, the moment has arrived to initiate this transition… pic.twitter.com/1sXDGtRC2Q — Ondo Finance (@OndoFinance) August 17, 2025 Ondo Finance’s token appreciation on Thursday came on the heels of last week’s unveiling of tokenized versions of over 100 U.S.-listed stocks, ETFs, and other equities on Ethereum. These tokens were launched through the Ondo Global Finance platform, specifically catering to non-U.S. investors. Lai Yuen, an investment analyst at Fisher8 Capital, suggested that the excitement surrounding the new tokenized stocks is driving the price increase. He also noted that partnerships and advice from various experts have contributed to a rapid growth of $160 million in total value locked (TVL) within just nine days. As of September 11, on-chain metrics indicate a total value locked of $1.56 billion, alongside a market capitalization of approximately $3.5 billion. Yuen expressed a positive long-term outlook for Ondo.
Yuen emphasized that if Ondo manages to capture just 10% of the stock market, it could yield substantial profits for its token holders. He further pointed out that Ondo’s regulatory advantages, reinforced by its advisory board, will create a lasting competitive edge that will be challenging for rivals to match. On September 3, the company announced that all tokens would be backed by real assets. The protocol aims to replicate the function of stablecoins in the securities market, providing global access to tokenized assets and enabling trading outside of conventional market hours. “The launch of Global Markets by Ondo is significant as it achieves successful tokenization, an area where previous attempts often failed. This combination of regulatory support and easy blockchain access effectively tackles the regulatory, liquidity, and interoperability challenges that hindered earlier tokenized securities efforts,” stated Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet.
The firm has plans to broaden its tokenization efforts beyond Ethereum, targeting other blockchain platforms such as BNB Chain, Solana, and Ondo Chain. Ondo has also secured backing from major cryptocurrency wallets, including OKX Wallet, Trust Wallet, MEXC, Bitget Wallet, Morpho, and Ledger. Furthermore, the firm aims to incorporate over 1,000 U.S.-listed securities, ranging from individual stocks to fixed-income ETFs, with its tokenized stocks and ETFs designed to offer liquidity equivalent to the underlying securities, facilitating immediate trades with minimal slippage.
BlackRock Looks to Tokenize ETFs
The rise in Ondo’s token value coincides with the announcement from BlackRock, the world’s largest asset management firm, which disclosed its plans to bring exchange-traded funds (ETFs) to the blockchain. According to a report by Bloomberg, the firm intends to tokenize ETFs linked to physical assets like stocks, contingent on regulatory approval. Following the success of BlackRock’s spot Bitcoin ETFs, these funds have become more popular than publicly listed stocks, with over 4,300 ETFs currently available—approximately 100 more than the number of U.S.-listed companies. Data from Morningstar indicates that ETFs comprise around 25% of the total investment vehicle universe, which also includes mutual funds and closed-end funds.
BlackRock is already managing the largest tokenized money market fund globally, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which holds approximately $2.2 billion in assets across various blockchains, including Ethereum, Polygon, Aptos, and Avalanche. JPMorgan has noted that tokenization represents a major advancement for the $7 trillion money market fund sector, referencing initiatives by Goldman Sachs and Bank of New York Mellon that BlackRock plans to participate in upon launch.
