Ondo Finance Launches Tokenized Stocks on Robinhood Chain

Ondo Finance has expanded its offering of tokenized stocks on Robinhood Chain. According to the issuer, users will be able to trade 15 tokenized stocks and ETFs, as well as exchange assets between Ethereum, BNB Chain, and Robinhood Chain. The list includes crypto companies (Strategy, BitMine, Circle), tech giants (Meta, Apple, Tesla, Google), and ETFs – a US copper index fund and an ETF of major Chinese companies. Trading for 11 of these products will operate through the StablePair pool on Uniswap V4.

Why it matters

The update is called a key step towards solving the liquidity fragmentation issue: one of the largest issuers of tokenized stocks has entered Robinhood Chain, and Uniswap has become its liquidity layer. Ondo Stocks and Robinhood's stock tokens are the same securities, pegged 1:1, like USDC and USDT. A tokenized Apple stock on Robinhood Chain is expected to have the same value as the Ondo equivalent, as both track the price of Apple shares on traditional exchanges. Therefore, they should exchange 1:1, like USDT and USDC.

However, several issuers of tokenized assets have not solved the fragmentation issue. Uniswap founder Hayden Adams supported the approach and noted the economic benefits of the update: liquidity providers receive a share of trading fees. Additionally, stocks that should be worth 1:1 may differ by a few basis points since they are issued by different issuers, creating opportunities for arbitrage, and traders capture the difference.

However, the design only addresses liquidity issues between Robinhood, Ethereum, and BNB Chain. Fragmentation between networks like Solana and Canton is not addressed by Ondo – the International Monetary Fund has called this the main barrier to the adoption of tokenized stocks.

Market position

Robinhood Chain will become the 11th network for Ondo Stocks. The company has issued tokenized assets on Ethereum, Stellar, Solana, BNB Chain, XRP Ledger, Sui, Arbitrum, Tempo based on Stripe, and Mantle.

The total value of Ondo Finance's tokenized stocks by the end of October is $930 million: an 8% increase over thirty days with a market share of 25%. This is the second result among issuers after Binance's bStocks with assets of $1.4 billion.