What is Procter & Gamble Tokenized Stock (Ondo) (PGon)?

Deep Dive

1. Purpose & Value Proposition

PGon solves accessibility barriers for international investors seeking exposure to US equities. Traditional stock ownership often requires US brokerage accounts or ETFs unavailable abroad. PGon tokenizes PG shares, letting holders benefit from price movements and automatically reinvested dividends without direct stock ownership. This bridges TradFi and crypto markets for cross-border capital flows.

2. Technology & Architecture

Ondo Finance mints PGon tokens as ERC-20 assets, each representing a claim on PG shares held in custody. The system uses smart contracts to:
- Adjust token supply based on demand (minting/burning).
- Convert dividend payouts into proportional token value increases, avoiding regulatory complexities of distributing cash dividends globally.
Liquidity pools integrate with traditional market makers to ensure tight spreads.

3. Key Differentiators

Unlike conventional stock tokens, PGon avoids direct securities regulation by structuring tokens as debt instruments collateralized by PG shares. This lets it operate in jurisdictions where securities laws restrict foreign stock ownership. It also bypasses market-hour limitations, enabling trading during crypto market hours (24/5).

Conclusion

PGon fundamentally reimagines equity access through blockchain, offering a compliant bridge for global investors excluded from US markets. While innovative, its long-term viability hinges on regulatory acceptance of tokenized debt structures. Could this model become a template for democratizing access to other traditional assets?