Ondo Finance has integrated Chainlink to provide live price data on tokenized US stocks on its Ondo Global Markets platform. This includes SPYon, QQQon, and TSLAon, representing the SPDR S&P 500 ETF, Invesco QQQ ETF, and Tesla stock in tokenized form, respectively. With prices verified on-chain, these assets can now serve as collateral on DeFi platforms built on Ethereum, marking the first direct acceptance of tokenized stocks into these lending systems.
In brief
- Ondo Finance integrates Chainlink to provide live on-chain prices for tokenized US stocks and ETFs, making them usable as collateral in Ethereum-based DeFi.
- Tokenized assets, including SPYon, QQQon, and TSLAon, can now support stablecoin borrowing on platforms like Euler.
- Sentora establishes risk parameters, defining collateral requirements and liquidation rules for tokenized stocks.
Digital shares as collateral in DeFi
Price feeds are now live on DeFi apps such as Euler, allowing users to borrow stablecoins using tokenized stocks and ETFs as collateral. Ondo Finance plans to soon extend support to its entire range of tokenized stocks and ETFs.
By providing on-chain reference prices, the integration allows DeFi protocols to define collateralization rules and manage liquidations based on the value of the underlying stocks. It also takes into account corporate actions, such as dividends, helping to maintain accurate and up-to-date tokenized stock prices. Ondo adds that Sentora monitors the risks for these assetsdefining collateral requirements and specifying the conditions for liquidating positions.
Expansion of tokenized stocks in crypto finance
Previously, tokenized stocks were primarily used to track the value of their underlying stocks and were rarely accepted as collateral in DeFi. With the integration of Chainlink, Ondo Finance now provides live prices on-chain, making them fully usable for lending and other decentralized finance activities. This follows Chainlink's selection in October 2025 to provide verified prices for Ondo's digital stocks.
On the regulatory front, US authorities are actively setting rules for tokenized securities, reflected in several key developments:
- In September, Nasdaq requested SEC approval to list and trade tokenized shares on its regulated market, aiming to bring digital versions of public shares under its supervision.
- Shortly after, in December, the SEC issued guidance on how broker-dealers can hold tokenized securities under existing rules, providing clarity to market participants.
- Next, the SEC granted a no-action letter to a DTCC subsidiary, allowing it to provide tokenization services for securities already held in custody, further supporting digital asset operations.
Furthermore, in June, more than 60 tokenized US stocks were listed on platforms like Kraken and Bybit, demonstrating their growing adoption in the crypto market. According to Token Terminal, these assets now boast a combined market capitalization of $543 million, showing their growing role in decentralized finance.
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