This FAQ is intended for integration partners and their end users. For Ondo Intelligent Portfolios, see the Ondo Intelligent Portfolios user FAQ. See the token registry for contract addresses across all supported chains.
What is Ondo Stocks?
Ondo Stocks is a platform that tokenizes publicly traded U.S. stocks and ETFs. It enables investors outside the United States to gain economic exposure to these assets by minting, transferring, and redeeming securities-backed tokens on Ethereum, Solana, and BNB Chain, with others coming soon. Ondo Stocks can also be bridged to HyperEVM. Each token is fully backed by the corresponding stock or ETF, held with one or more licensed U.S. custodial broker-dealers (together with cash in transit).What are Ondo tokenized stocks and ETFs?
Ondo tokenized stocks and ETFs are digital tokens that deliver total-return exposure to publicly traded assets. Each token mirrors the economic performance of its underlying asset — including price movements, dividends, and corporate actions — so holders participate in the same economic results as if they owned the asset directly, with dividends invested (net of any applicable withholding taxes) back into the asset. For example, AAPLon — the “-on” suffix denotes an Ondo tokenized asset — reflects the total return of Apple Inc. (AAPL), giving tokenholders the economic exposure of holding AAPL with dividends reinvested. Prices are quoted in USD. This model is inspired by stablecoins and designed for simplicity and accessibility: instead of directly holding the underlying asset or rights to receive it, tokenholders hold a token that can be redeemed for stablecoins, while benefiting from the total economic performance of the underlying asset.How do Ondo tokenized stocks provide tokenholders with the liquidity of traditional markets?
Ondo Stocks is designed to instantly tap into the liquidity of traditional equity markets. As such, we generally can provide the same liquidity for our tokens onchain as is available for the corresponding underlying asset in traditional trading venues. Ondo tokenized stocks do not require dedicated onchain liquidity pools. Note that, in order to mint or redeem tokens, primary purchasers must be successfully KYCed by the token issuer.Why is this important?
Liquidity refers to how easily and efficient you can buy or sell an asset without significantly affecting its price. Traditional equity markets often have very deep liquidity, allowing for tight bid-ask spreads and minimal slippage, even for large trades. Through its design, the Ondo Stocks platform enables its tokenized stocks and ETFs to have similar levels of liquidity.When can I trade Ondo tokenized stocks?
Minting and redeeming directly from the Ondo Stocks platform is generally available 24 hours a day, five days a week (24/5), from Sunday 8:00:00 pm ET to Friday 7:59:00 pm ET.* Tokens can be traded peer-to-peer at any time 24/7.*Minting and redeeming of tokens may be temporarily halted due to certain corporate actions (e.g. dividends, stock splits, etc.), market conditions (e.g. excessive volatility, transition to a new trading session, etc.), or system risk controls being triggered. You can track such halts at status.gm.ondo.finance.
Are Ondo tokenized stocks freely transferrable?
Yes. All Ondo tokenized stocks are freely transferable outside the US across supported blockchains, subject to the token eligibility criteria and applicable contractual restrictions.How do Ondo tokenized stocks track the price of the real stock?
Ondo tokenized stocks are total-return trackers of their underlying securities. This means they reflect both price movements and reinvested dividends, giving users exposure to the economic performance of the real stock over time — not just the price appreciation. When you hold an Ondo tokenized stock, you receive the economic exposure as if you owned the actual stock and invested its dividends (net of any applicable withholding taxes) into the stock. This ensures that the tokenized asset tracks the total return of the real-world asset. For more on how corporate actions are handled, see the below questions on dividends and stock splits.What are total-return trackers?
Total-return trackers are financial assets that are designed to mirror the complete performance of an index or asset. Unlike price-return trackers, which only capture an asset’s market value changes, total-return trackers account for all cash flows — dividends, interest, or capital gains distributions — assuming these are reinvested to compound returns (net of applicable withholding taxes). A total-return tracker includes:- Price movements — gains or losses in the asset’s market value
- Income distributions — such as dividends (for stocks) or interest (for bonds)
- Corporate actions — like mergers that may affect total value
What are withholding taxes?
Withholding taxes are taxes that are automatically deducted from certain types of income — such as dividends — before that income is paid. For US stocks, brokers are generally required to withhold a portion of dividends payable to non-US investors based on the tax rules that apply to the entity receiving the dividend. The Ondo Stocks entity that issues the tokens is based in the British Virgin Islands, so dividends paid by US companies to the entity are subject to the standard 30% US withholding tax. This is the default rate that applies to non-US persons, in accordance with US tax regulations. When we reinvest dividends, we do so net of this withholding tax. As an example, let’s say that Coca-Cola (KO) paid out a 10 received in dividend payments). In this case, the Ondo Stocks platform would withhold 30% of 3) for payment of taxes, and take the other $7 and reinvest it to purchase additional KO shares.Do I receive dividends from Ondo tokenized stocks?
Instead of distributing dividends as cash payouts directly to asset holders, Ondo Stocks automatically invests their equivalent value into the underlying stock, net of applicable withholding taxes. The effect of dividend reinvestment is reflected in the per-token price or the displayed token balance, depending on how your wallet or platform displays your holdings.* Example: Suppose Tesla stock is trading at 2 dividend. In a traditional brokerage account:- Tesla’s price drops to 2 dividend.
- After 30% withholding tax (default rate for non-US investors), users receive $1.40 in dividend income in cash.
- We collect the $1.40 net dividend in our brokerage account.
- We invest 1.40 buys 98 = 0.014 additional shares.
- Your Ondo Tesla token now represents 1.014 shares of Tesla, rather than just 1 share.
*On Solana and BNB Chain, supported wallets and explorers use a display multiplier to adjust the token balances and prices shown to you. This allows changes in shares per token, including those resulting from dividend reinvestment, to be reflected in your displayed balance, with a corresponding adjustment to the price per displayed unit. Wallets and explorers that do not support these adjustments use a presentation similar to Ethereum, where changes in shares per token are reflected in the per-token price. These adjustments affect only how your holdings are displayed; they do not change your onchain token balance or economic exposure.