On Monday, Ondo Finance announced that its users will now be able to transfer tokenized U.S. stocks and ETFs to Hyperliquid’s HyperEVM by using the Ondo Bridge supported by LayerZero. With this integration, users will be able to transfer assets from Ethereum and BNB Chain to HyperEVM, including more than 35 tokenized assets such as SPYon, QQQon, NVDAon, TSLAon, GOOGLon, CRCLon, SLVon, NFLXon, BABAon, COPXon, UNGon, PPLTon, and PALLon. This new bridge will allow traders on Hyperliquid to use real tokenized spot stock positions as collateral alongside perpetual futures contracts. On May 11, Ondo Finance announced the integration of the LayerZero bridge to transact Ondo Finance tokenized stocks on HyperEVM, revealing their focus on the booming tokenized stock sector. Ondo Finance Integrates LayerZero Bridge Despite Bizarre Incident In the latest announcement, Ondo Finance revealed that their tokenized stocks are now available to transfer from BNB Chain and Ethereum to Hyperliquid’s HyperEVM by using the Ondo Bridge, which is powered by LayerZero. This integration will allow users to access tokenized stocks and ETFs on Hyperliquid’s HyperEVM, including SPYon, QQQon, NVDAon, TSLAon, GOOGLon, CRCLon, SLVon, NFLXon, BABAon, COPXon, UNGon, PPLTon, and PALLon. Ondo Finance is a leading Real-World Asset (RWA) tokenization platform that brings tokenized assets from traditional finance to a decentralized ecosystem. Hyperliquid is one of the biggest decentralized perpetual exchanges, and its HIP-4 event contract has recently created a record after hitting $6.2 million in nominal trading volume on the debut day. In the official announcement , the platform stated that, “ Rather than recreating fragmented on-chain liquidity, Ondo tokenized stocks and ETFs tap into the depth of traditional equity markets. Pricing is derived from underlying listings on venues such as NYSE and Nasdaq, with execution designed to remain consistent and efficient across market conditions. ” These tokenized stocks and ETFs provide the same liquidity as the traditional world for the selected traders on Hyperliquid. These on-chain investment products are allowing investors to integrate advanced strategies like capital-efficient portfolio hedging . This kind of strategy allows traders to mitigate their losses during the downward trend in the financial market. Although Hyperliquid is not the only protocol for trading Ondo Finance’s tokenized stocks, as there are many protocols that have recently integrated the same service, including Felix and Melt . Felix is already offering more than 260 tokenized stocks and exchange-traded funds to its users. LayerZero’s Latest Exploitation Raises Security Concerns The announcement of the integration ot LayerZero powered bridge is coming amid the recent security incident on LayerZero. In the bizarre cyber attack linked to North Korea’s Lazarus Group, Kelp DAO faced an exploitation of approximately $292 million after its LayerZero bridge was compromised in the sophisticated attack. This is one more example that shows the vulnerability present in the cross-chain bridges, which makes it a soft target for hackers around the world. The cyber attack on the Kelp DAO has created panic in the DeFi world, wiping out more than $13 billion from the ecosystem right after the attack took place. This attack on Kelp DAO has created turbulence in the entire crypto market, as many lending protocols were experiencing intense withdrawals of funds, creating an imbalance in the lending pool. This DeFi attack on the bridge has created bad debt in the DeFi market. Boom In Tokenized Stocks Amid New Regulatory Guidelines Tokenized stocks and ETFs are similar to traditional company shares or funds, which are converted into digital tokens through a process of tokenization on the blockchain. While it works in the same manner as a traditional stock, it has some different features, like instant settlement. The demand for these tokenized stocks has grown impressively in the last few months, including stocks and ETFs. According to the on-chain data, tokenized equities are slowly heading towards $1 billion in market value in 2026. Ondo Finance is one of the popular platforms, which currently holds around $935 million in tokenized equities total value locked (TVL), along with cumulative trading volume. It is holding a large share of the tokenized stocks market. In June 2025, Kraken announced the launch of xStocks. This is the tokenized stock platform that currently offers more than 100 tokenized U.S. stocks and ETFs. At present, the platform is handling more than $25 billion in total transaction volume. The platform is also planning to expand to more than 500 assets by the end of this year. One of the major factors behind the boom in tokenized stocks is the growing regulatory clarity. Earlier this year, the U.S. SEC revealed the new guideline where the agency confirmed that tokenized stocks and ETFs are securities under the existing law, and their issuance on the blockchain does not change the rules. After this clarification from the SEC, many companies are planning to integrate tokenized stocks. Recently, Nasdaq and NYSE have recently recieved approvals for pilot programs that allow trading for tokenized versions of popular stocks and ETFs, including stocks available on the S&P 500. Many major financial institutions are also rushing to adopt the concept of tokenization , including major names like BlackRock, Franklin Templeton, JPMorgan, etc. Apart from this, some traditional exchanges are also planning to launch tokenized products. Some Traditional Groups Are Opposing the Concept of Tokenized Stocks While many companies are planning to integrate new innovations like tokenized stocks, its critics are raising questions about investors’ protection. Also, these traditional trading organizations are saying that a tokenized market might divide liquidity. SIFMA and other groups have urged regulators to take a careful approach in the adoption of tokenized investment products. SIFMA stated in the official post that “ SIFMA and its members strongly support innovation in the securities markets. However, the adoption and potential benefits of tokenized securities markets rests on ensuring that they are subject to the same fundamental investor protection and market integrity principles that have helped make the U.S. securities markets the largest and deepest in the world.” Also Read: Crypto Market Rally as ETF Inflows Fuel BTC, ETH, XRP, SOL Gains
