Stocks on the Blockchain: A New Way to Trade
A Major Step Forward for DeFi
Ondo Finance has taken a significant leap by integrating Chainlink's data feeds into its platform. This integration allows users to trade tokenized versions of popular US stocks like SPY, QQQ, and Tesla on the Ethereum blockchain. These tokens represent real stocks and ETFs, enhancing their utility for trading and lending.
Accurate and Reliable Data Feeds
The integration with Chainlink ensures that Ondo Finance has access to accurate and up-to-date prices for these tokenized assets. This is crucial for DeFi platforms, as it enables them to set collateral and liquidation rules effectively. Chainlink's feeds also account for corporate actions like dividends, ensuring the values remain correct.
Initial Offerings and Future Expansion
Initially, Ondo supports tokens for:
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ ETF (QQQ)
- Tesla stock (TSLA)
More tokenized stocks and ETFs are expected to be added soon, potentially making tokenized stocks more popular in the DeFi space.
Risk Management and Stability
Sentora handles risk management by setting and monitoring parameters like collateral factors and liquidation thresholds. This ensures that the lending markets remain stable and secure. By using Chainlink's data, Ondo aims to make tokenized stocks more widely accepted as collateral in DeFi.
Addressing a Key Issue
This development addresses a long-standing issue: tokenized equities were mostly used for price exposure but not widely accepted as collateral. By combining exchange-linked liquidity with onchain price feeds, Ondo and Chainlink are making tokenized stocks more versatile. This could open up new opportunities for lending and other financial products.
Partnership and Industry Impact
The partnership between Ondo Finance and Chainlink began in October 2025, with Chainlink becoming the primary data provider for Ondo's tokenized stocks and ETFs. This collaboration highlights the growing importance of reliable data feeds in the blockchain industry.
The Race to Tokenize US Equities
The race to tokenize US equities is heating up. Regulators are refining the legal framework, and both traditional financial institutions and crypto platforms are jumping in.
- Nasdaq filed for a rule change to list and trade tokenized stocks.
- The SEC has issued guidelines and no-action letters to support tokenized securities.
On the crypto side, exchanges like Kraken and Bybit have launched tokenized US stocks, though these are not yet available to US customers. Robinhood has also entered the fray, introducing tokenized stocks for EU users and developing a blockchain-based platform for 24/7 trading.
