iShares Core S&P 500 ETF (Ondo Tokenized ETF) ivvon

iShares Core S&P 500 ETF (Ondo Tokenized), branded IVVon, is Ondo Stocks’ onchain representation of BlackRock’s iShares Core S&P 500 ETF (IVV). IVV is an exchange-traded fund intended to track the S&P 500, while IVVon gives eligible investors blockchain-based economic exposure to that ETF. The Ondo app lists the asset as “IVVon: iShares Core S&P 500 ETF (Ondo Tokenized).”

Ondo describes its tokenized stocks (a term that includes ETFs) as tokens issued by Ondo Global Markets (BVI) Limited, using the “on” suffix. They are designed as total-return trackers: holders receive economics similar to owning the underlying asset and reinvesting distributions, net of applicable withholding tax. The token is not a share in the iShares fund itself and does not automatically confer direct shareholder title.

For the custodial U.S. deployment announced in July 2026, Ondo said IVV was tokenized while the underlying shares remained in the existing regulated U.S. custody chain. Oasis Pro TA, an SEC-registered transfer agent and indirect Ondo subsidiary, issues tokenized security entitlements; Broadridge’s ProxyVote.com integration is intended to provide communications and onchain proxy voting for that custodial model. Availability and rights depend on the particular offering documents and jurisdiction.

Traditional U.S.-listed ETFs are generally difficult for non-U.S. investors to access directly because of brokerage, jurisdiction, settlement, and market-hour constraints. IVVon seeks to make exposure to the S&P 500 available in a blockchain-native form, with fractional ownership, transferability, composability in supported DeFi applications, and near-continuous trading windows rather than relying solely on a conventional brokerage account.

Tokenization also introduces structural risks and distinctions. An IVVon holder should not assume direct ownership of IVV shares, voting or statutory information rights, or a guaranteed one-token/one-share price. The instrument is legally a structured note issued by a BVI bankruptcy-remote SPV, and redemptions, transfer restrictions, KYC, sanctions screening, taxes, liquidity, smart-contract, custodian, and issuer risks remain relevant.

Because distributions are reinvested net of withholding tax, IVVon’s unit price can diverge from IVV’s quoted share price over time. Quotes can differ from the displayed midpoint because of inventory, order size, market conditions, spreads, and proprietary pricing; secondary-market venues may add their own fees.

Ondo Global Markets (BVI) Limited issues the tokenized instrument as a Swiss-law-governed structured note. Ondo documentation says tokens are fully backed by the corresponding underlying stock or ETF plus cash in transit, with additional collateral required for overcollateralization. The underlying securities are held through regulated custodial broker-dealers, while tokenholders have a claim to redeem for the then-value of the underlying exposure rather than direct registered title.

IVVon is a total-return tracker. Its economic value follows IVV’s price movements and incorporates distributions as if reinvested into additional IVV exposure after applicable withholding tax. Consequently, shares-per-token can increase after a distribution and one token need not equal one IVV share; Ondo publishes the multiplier in its app/onchain infrastructure. On Solana and BNB Chain, Scaled UI can display balances and prices in a way that more closely resembles IVV units, without changing economic exposure.

Eligible users can buy or redeem through Ondo’s platform using USDon (with stablecoin conversion such as USDC handled atomically), and Ondo says minting and burning are instant with no separate mint/burn fee; gas and quoted-price differences still apply. The platform supports fractional tokens and currently lists Ethereum, BNB Chain, and Solana, with transfer to HyperEVM via bridge.

Ondo states that the SPV is bankruptcy-remote, segregated from Ondo Finance, and governed with an independent director. Ankura Trust Company independently verifies holdings daily and holds a first-priority security interest; Ondo also describes daily reports, monthly reconciliations, annual audits, and smart-contract audits by Spearbit and Cyfrin. The July 2026 custodial IVV launch additionally describes 1:1 backing, transfer-agent issuance, and Broadridge governance services.