What is RTX Tokenized Stock (Ondo) (RTXon)?

Quick Facts

• Issuer: Ondo Finance, founded in 2021
• Underlying asset: RTX Corporation (aerospace and defense company)
• Token standard: ERC-20 on Ethereum, BEP-20 on BNB Smart Chain, SPL on Solana
• Backing: 1:1 backed by actual RTX shares held in regulated custody
• Dividends: Automatically reinvested into the token
• Eligibility: Non-US investors only (U.S. Securities Act Reg. S)
• Trading hours: 24/5 minting and redemption; 24/7 peer-to-peer transfer
• Platform: Ondo Global Markets (OGM)

Introduction

RTXon is a tokenized stock representing economic exposure to RTX Corporation, one of the world's largest aerospace and defense companies. It is issued by Ondo Finance through its Ondo Global Markets platform, and sits within the fast-growing category of real-world asset (RWA) tokens.

Rather than buying RTX shares through a traditional broker, eligible investors can hold RTXon directly in a blockchain wallet — with dividends reinvested automatically and full access to on-chain transferability.

History & Background

Ondo Finance was founded in 2021 by former Goldman Sachs digital assets professionals, including CEO Nathan Allman and President Justin Schmidt. The firm set out to bring institutional-grade financial products onto public blockchains.

Ondo Global Markets, the platform behind RTXon, launched in September 2025. It quickly became the largest tokenized equities platform by total value locked, offering over 400 tokenized U.S. stocks and ETFs across Ethereum, BNB Smart Chain, and Solana.

How RTX Tokenized Stock (Ondo) Works

RTXon follows a mint-and-redeem model. When a qualified investor mints RTXon, Ondo's regulated broker-dealer partner purchases the corresponding RTX shares in the open market and places them with a qualified custodian. An equivalent number of RTXon tokens is then minted to the investor's wallet.

Legally, the tokens are structured as notes issued by Ondo Global Markets (BVI) Limited, a bankruptcy-remote special purpose vehicle. This means token holder rights are protected even in the event of an Ondo Finance corporate issue. The underlying shares are held at U.S.-registered custodial broker-dealers, with daily independent attestations published by Ankura Trust Company.

Dividends paid by RTX Corporation are automatically reinvested net of applicable tax withholdings, meaning the token's value grows to reflect RTX's total return over time.

Tokenomics

RTXon is a demand-driven token — new tokens are minted only when users deposit funds to purchase the underlying RTX shares, and tokens are burned when users redeem. There is no fixed issuance schedule or pre-mine.

The token's value closely tracks the real-time market price of RTX Corporation stock. Ondo does not operate a dedicated crypto liquidity pool for RTXon; instead, it connects directly to traditional equity market liquidity through its broker-dealer infrastructure.

Ecosystem & Use Cases

RTXon can be used beyond simple holding. On Ethereum, select Ondo tokenized stocks can serve as collateral in DeFi lending protocols such as Morpho, allowing investors to borrow against their equity positions without selling them. Tokenized stocks can also be used in structured products and liquidity strategies.

The platform integrates with MetaMask, Ledger, and major DeFi infrastructure, making RTXon accessible through familiar Web3 tooling.

Team, Governance & Community

Ondo Finance is led by CEO Nathan Allman and President Justin Schmidt, both veterans of Goldman Sachs' digital assets division. Other key team members bring backgrounds from BlackRock and McKinsey.

RTXon itself does not have a governance structure — it is a product token, not a protocol governance token. Governance of the broader Ondo ecosystem is handled separately through the ONDO token. Ondo maintains active community channels and regular protocol updates across social media.

Advantages

• Global access: Non-US investors can gain exposure to RTX Corporation without a traditional brokerage account.
• Dividend reinvestment: RTX dividends are automatically compounded into the token's value.
• DeFi composability: RTXon can be used as collateral in decentralized lending protocols.
• 24/5 trading: Mint and redeem outside traditional stock market hours.
• Regulated custody: Underlying shares are held at U.S.-registered custodial broker-dealers with daily attestations.
• Bankruptcy-remote structure: Issued via an SPV, segregating assets from Ondo Finance Inc.

Risks & Challenges

• Geographic restrictions: RTXon is available to non-US investors only, subject to additional eligibility requirements.
• Regulatory risk: The tokenized securities landscape remains subject to evolving global regulations.
• Smart contract risk: Despite independent audits by Spearbit and Cyfrin, on-chain code carries inherent risk.
• Market volatility: RTXon tracks RTX Corporation stock, meaning it is exposed to aerospace/defense sector and broader equity market risks.
• Liquidity risk: Redemptions are processed during market hours and may be subject to temporary halts during corporate actions.

Long-Term Vision

RTXon is part of Ondo Finance's broader mission to bridge traditional capital markets and decentralized finance. Ondo envisions a future where thousands of publicly traded securities are accessible on-chain to investors worldwide, without relying on legacy brokerage infrastructure.

As the RWA tokenization sector matures — with major institutions like BlackRock, JPMorgan, and the DTCC actively building tokenization infrastructure — demand for products like RTXon is expected to grow. Ondo is also developing Ondo Chain, a dedicated Layer-1 blockchain for institutional-grade RWAs, which could further enhance the utility and settlement efficiency of tokenized stocks like RTXon.