Ondo, Broadridge enable proxy voting for tokenized stocks, ETFs

Ondo Finance and Broadridge announced a system allowing holders of tokenized stocks and ETFs to cast proxy votes by connecting crypto wallets to Broadridge’s ProxyVote. Submitted votes are recorded onchain, and Ondo’s issuer casts votes on the underlying shares.

Broadridge built a Web3-enabled relay that links a voter’s crypto wallet to its existing ProxyVote service. Tokenholders sign in with their wallets, confirm holdings and submit voting preferences. Broadridge forwards those instructions to Ondo, whose issuer executes the votes on the actual securities. The process is logged on a public ledger.

Proxy voting lets shareholders authorize someone else to vote corporate matters on their behalf. Tokenized stocks and ETFs generally lacked a standard method for holders to take part in proxy voting. The Broadridge relay is designed to let onchain tokenholders exercise the voting rights associated with the real-world shares.

Matthieu de Vergnes, global head of institutional at Ondo Finance, wrote in the announcement: “By working with Broadridge, we are enabling holders of our on-chain tokenized stocks to access governance and voting capabilities, with all the additional benefits on-chain tokens provide.”

Ondo issues tokenized stocks and ETFs on Solana, Ethereum and BNB Chain and reports roughly 70% market share with more than $700 million in total value locked. Market data show tokenized stocks have about $1.15 billion in distributed value, up roughly 25% over the past 30 days, with monthly transfer volume near $2.27 billion and more than 217,000 holders.

Last month Ondo and Franklin Templeton introduced tokenized versions of five Franklin ETFs for distribution across Europe, Asia-Pacific, the Middle East and Latin America; U.S. availability depends on regulatory clarity. Separately, Binance listed ten tokenized assets from Ondo Global Markets on its Binance Alpha platform, including tokens tracking Apple, Nvidia and the Invesco QQQ ETF.

Ondo’s tokens are backed by the corresponding stocks or ETFs. Broadridge’s relay connects the crypto wallet ecosystem to the proxy infrastructure used by issuers and transfer agents, and the firms described the linkage as a way to align voting rights between onchain representations and the underlying securities.