Ondo Finance said the total value locked across its products has crossed $4 billion, a milestone driven by growth in tokenized stocks and exchange-traded funds.
The company, which builds tokenized versions of traditional investments, began with U.S. Treasuries and says it is now the largest platform for them. RWA.xyz data ranks Ondo’s tokenized Treasury holdings at $3 billion, higher that any other issuer. According to Ondo, more than $1.3 billion of the total now sits in tokenized stocks and ETFs. It also says it is expanding into portfolios and private markets, and that its products have drawn more than 1 million cumulative holders.
The shift toward equities matches where onchain trading is concentrated. A recent report from blockchain analytics firm Dune found that tokenized stocks make up 8% of the $34.5 billion tokenized real-world asset market but account for 93% of onchain trading, using data through Aug. 31. Cash-equivalent tokens such as tokenized Treasuries form the largest class at nearly $18 billion, but Dune says they barely trade.
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Ondo credits part of its growth to how its tokens trade. Ondo Stocks draws on liquidity from traditional exchanges through a request-for-quote system, in which a buyer asks for a price and a market maker quotes one. The company says leading wallets and apps connect users to that liquidity, and that its tokens can move between users without permission on Solana (CRYPTO: $SOL), Ethereum (CRYPTO: $ETH) and BNB Chain (CRYPTO: $BNB).
That design addresses a weakness flagged by the International Monetary Fund on Oct. 8. In a blog post, IMF economists wrote that tokenized markets remain relatively illiquid and more volatile than their traditional counterparts, with fragmentation across networks and venues hampering price formation.
The IMF’s October Global Financial Stability Report, its first with a chapter on tokenized markets, named Ondo among the top tokenization platforms alongside Securitize (NYSE: $SECZ), Circle (NYSE: $CRCL), Tether and Bridgetower. The fund estimated that tokenized repurchase agreements average $300 billion to $350 billion in daily volume, with other tokenized assets adding about $65 billion a day. That remains small beside the roughly $13 trillion traded daily in the U.S. repo market. It also found that more than half of tokenized trading happens outside traditional market hours, and that about 80% of the tokenized equity trades it analyzed were for less than one share.
Ondo said it expects tokenization to eventually be measured in trillions of dollars. The IMF noted that global capital markets hold $300 trillion in assets and urged regulators to clarify the legal rights attached to tokenized assets before the market grows much larger.
