Ondo Finance Introduces Proxy Voting for $700 Million in Tokenized Stocks and ETFs

In a significant move, Ondo Finance is narrowing the gap between its tokenized equities and their conventional counterparts, enabling investors to engage in corporate decision-making. Through a collaboration with Broadridge Financial Solutions, holders of over 250 tokenized securities on the Ondo platform can now access company documents and cast their votes via Broadridge's ProxyVote system. By logging in with their crypto wallets, investors can utilize tools typically reserved for traditional brokerage accounts, marking a substantial advancement in the crypto space. As the tokenized equities sector experiences rapid growth, with over $1.1 billion in locked value, Ondo Finance stands as a leader, boasting more than $700 million in tokenized stocks and ETFs on its Global Markets platform for non-US investors. The introduction of proxy voting is particularly noteworthy, as tokenized equities often lack fundamental governance rights. While Ondo's tokens remain separate from the underlying shares, this new system allows investors to express their preferences, which Ondo can then apply when voting on the shares it holds. "This development aligns with Ondo's mission to make traditional financial assets more accessible," stated Matthieu de Vergnes, Ondo's global head of institutional, in an interview. "By being on-chain, investors benefit from the free transferability and DeFi compatibility of these assets, while also gaining the governance rights associated with the underlying assets." Broadridge, a leading processor of proxy votes in traditional markets, is expanding its infrastructure to support blockchain systems. The firm's goal is to create a unified workflow that accommodates both digital and conventional assets. According to Danielle Gurrieri, senior vice president and head of product management at Broadridge, providing investors with the same level of auditability, transparency, and compliance will play a significant role in making the tokenized world more scalable and trustworthy for end investors.