Ondo Finance Introduces Proxy Voting for $700 Million in Tokenized Equities

In a bid to enhance the investor experience, Ondo Finance has launched a proxy voting feature for holders of its extensive range of tokenized equities. This development brings tokenized stocks and ETFs closer to their traditional counterparts, enabling investors to participate in corporate decision-making. The new feature, developed in collaboration with Broadridge Financial Solutions, allows holders of over 250 tokenized securities to access company filings and cast their votes through Broadridge's ProxyVote system. By logging in with their crypto wallets, investors can now access documents and governance tools typically reserved for traditional brokerage accounts. The introduction of proxy voting is a significant step forward for tokenized equities, which have emerged as one of the fastest-growing sectors in the crypto space. With over $1.1 billion in value locked, this category has tripled in size over the past year, according to data from RWA.xyz. As the largest issuer in the sector, Ondo Finance has more than $700 million in stock and ETF tokens on its Global Markets platform, catering to non-U.S. investors. The addition of proxy voting to equity tokens addresses a long-standing issue, as these offerings often lacked basic governance rights. Although Ondo's tokens remain separate from the underlying shares and do not grant direct shareholder rights, the new system enables investors to express their preferences, which Ondo can then apply when voting the shares it holds. According to Matthieu de Vergnes, Ondo's global head of institutional, this development aligns with the company's vision of making traditional financial assets more accessible. "By combining the benefits of being on-chain, such as free transferability and compatibility with DeFi, with the governance of underlying assets, we can create a more inclusive and transparent investment experience," he said in an interview with CoinDesk. Broadridge, a leading processor of proxy votes in traditional markets, is extending its infrastructure to blockchain systems through this partnership. The goal is to support both digital and conventional assets within the same workflows, providing investors with the same level of auditability, transparency, and compliance. As Danielle Gurrieri, senior vice president and head of product management at Broadridge, noted, "This will go a long way in making the tokenized world more scalable and trustworthy for end investors."