Ondo Finance has activated 24/7 minting and redemption for tokenized versions of US stocks and ETFs. The feature operates directly on Ethereum and removes the previous restriction to standard business hours. Market participants can now create or burn the corresponding tokens at any time without waiting for traditional exchange openings. This adjustment aligns settlement processes with global time zones and continuous trading venues.

Ondo Finance develops tokenized representations of traditional financial instruments, primarily fixed-income products such as OUSG. The firm works with established transfer agents and custodians to ensure each token corresponds to underlying securities held off-chain. Regulators in multiple jurisdictions have examined similar structures for compliance with securities laws. The current expansion applies the same framework to equity exposures.

Operational Mechanics of Continuous Minting

Minting occurs when an authorized participant delivers the required cash or underlying assets to the designated custodian. The custodian confirms receipt and instructs the smart contract to issue the corresponding number of tokens on Ethereum. Redemption follows the reverse sequence, with tokens burned after verification that the assets have been returned. Both actions execute without batching windows because the underlying verification uses automated oracles and pre-approved account lists.

The process relies on whitelisted addresses that satisfy know-your-customer requirements before any transaction. Smart contracts enforce minimum and maximum sizes per operation to maintain operational controls. Settlement finality on Ethereum provides an immutable record once the transaction is confirmed. Participants therefore obtain immediate on-chain representation of ownership that can be transferred or used in other protocols.

Liquidity and Settlement Implications

Continuous minting and redemption can reduce the premium or discount between the token price and the net asset value of the underlying equities. Institutions gain the ability to adjust positions outside US market hours, which may improve alignment with offshore funding or risk-management cycles. Secondary-market venues that list the tokens can reference real-time creation and redemption prices as an arbitrage anchor. Over time, tighter spreads may encourage additional market makers to participate.

The change also supports integration with decentralized finance applications that require constant collateral valuation. Tokenized equities can serve as margin or collateral in lending protocols without waiting for traditional clearing cycles. This functionality extends the utility of equity exposure beyond simple buy-and-hold strategies. It therefore widens the set of use cases available to portfolio managers operating across multiple time zones.

Feature

24/7 Mint and Redeem

Assets

US Stocks and ETFs

Network

Ethereum

Earlier tokenized treasury products, including BlackRock’s BUIDL and Franklin Templeton’s BENJI, introduced on-chain issuance but retained conventional business-hour creation windows. Ondo’s equity implementation removes that constraint for a different asset class. Competing platforms such as Backed Finance have offered tokenized equities yet have not publicized identical 24/7 capabilities. The distinction lies in the operational schedule rather than the legal structure of the tokens themselves.

This feature distinguishes Ondo from prior expansion stories.

Regulatory Context and Compliance Requirements

Tokenized equities remain subject to the same securities regulations that govern the underlying shares. Ondo maintains registered transfer agents and ensures that token holders appear on the official books of the issuer. Jurisdictions such as Singapore and the European Union continue to refine rules for on-chain securities under frameworks including MAS guidelines and MiCA. Any expansion of minting hours must still satisfy ongoing reporting obligations to these authorities.

Market participants should monitor forthcoming guidance from the US Securities and Exchange Commission on the treatment of equity tokens in secondary trading. Clarity on custody standards and cross-border settlement could further accelerate adoption. Additional protocol upgrades may incorporate Chainlink or similar data feeds to automate compliance checks. Observers will also track whether other issuers replicate the 24/7 model for competing equity products.

Developments to Monitor

Volume statistics for the new minting channel will indicate whether institutions value the added flexibility. Integration announcements with additional custodians or exchanges could widen distribution. Any adjustment to fee schedules or minimum ticket sizes would affect accessibility for smaller participants. Regulatory filings that reference the 24/7 mechanism will provide further insight into supervisory expectations.

→ The takeaway

The introduction of continuous minting and redemption marks a measurable operational shift for tokenized equities. It demonstrates that issuance infrastructure can operate independently of legacy market calendars while preserving existing compliance layers. Institutions now have a practical tool for managing equity exposure across time zones. Continued observation of volumes, regulatory responses, and competing offerings will determine whether the model becomes standard practice across the tokenized-asset sector.