Phemex Integrates Ondo's Tokenized Stocks
The crypto platform Phemex has announced the full integration of tokenized stock offerings from Ondo Finance. This move allows Phemex users to gain exposure to real-world assets (RWAs) on the platform. The integration positions the company to participate in the growing market for tokenized securities.
- The integration makes 14 specific tokenized traditional assets available to Phemex's 10 million users, including shares of NVIDIA (NVDAon), Tesla (TSLAon), and Apple (AAPLon), as well as ETFs like the Nasdaq 100 (QQQon) and the SPDR S&P 500 (SPYon). - Ondo Finance ensures that each token is fully backed by the corresponding real-world asset, which is held by one or more U.S.-registered broker-dealers in a bankruptcy-remote structure for the benefit of token holders. - Ondo's tokenization process relies on a combination of API-based system integrations and smart contracts to connect traditional trading platforms with blockchain networks, ensuring real-time data synchronization and automated dividend distribution. - Beyond individual stocks, Ondo Finance is a major player in tokenizing U.S. Treasuries, with products like OUSG (Ondo Short-Term US Government Treasuries) which is primarily backed by BlackRock's BUIDL fund. - The broader market for tokenized real-world assets (RWAs) is projected by some analysts to reach between $10 trillion and $19 trillion by 2030-2033, growing from a market size estimated to be around $600 billion in 2025. - Ondo's technology enables features not available in traditional markets, such as 24/7 trading, fractional ownership of high-value stocks, and the potential for instant settlement using stablecoins. - The tokenized securities are designed to be composable within the DeFi ecosystem, allowing them to be used as collateral in compliant lending protocols like Flux Finance. - To comply with regulations, investors must typically pass KYC (Know Your Customer) and AML (Anti-Money Laundering) screening to mint or redeem Ondo's tokens, which have transfer restrictions embedded to prevent ownership by non-qualified individuals.
