iShares US Aerospace and Defense ETF (Ondo Tokenized)

Introduction to ITAON: Bridging Traditional ETFs and DeFi

The iShares US Aerospace and Defense ETF (Ondo Tokenized), known by its ticker ITAON, represents a groundbreaking innovation in the intersection of traditional finance and decentralized finance (DeFi). This tokenized version of the popular ITA ETF leverages blockchain technology to provide global investors with unprecedented access to US aerospace and defense sector exposure through a digital asset framework.

What is ITAON?

ITAON is a tokenized representation of the iShares US Aerospace and Defense ETF (ITA), created through Ondo Finance's tokenization platform. This digital asset provides tokenholders with economic exposure that mirrors holding the underlying ITA ETF, including the automatic reinvestment of any dividends received from the underlying holdings.

The tokenization process transforms traditional ETF shares into blockchain-based tokens, maintaining the same economic benefits while adding the advantages of digital asset infrastructure. This innovation allows investors to gain exposure to the US aerospace and defense sector through a more accessible and globally available format.

Key Features and Benefits

ITAON offers several compelling advantages over traditional ETF investing:

• Global Accessibility: Non-US retail and institutional investors worldwide can access US market exposure without traditional geographical restrictions
• 24/5 Trading: Unlike traditional markets, ITAON can be minted and redeemed 24 hours a day, five days a week, providing enhanced liquidity and trading flexibility
• Instant Settlement: Blockchain technology enables near-instantaneous minting and redemption processes, eliminating traditional settlement delays
• Dividend Reinvestment: Automatic reinvestment of dividends ensures compound growth without manual intervention
• Traditional Liquidity Access: Full access to traditional exchange liquidity while benefiting from DeFi infrastructure

Target Market and Use Cases

ITAON primarily serves non-US investors who face barriers accessing traditional US ETFs. This includes:

• International Retail Investors: Individual investors in regions with limited access to US securities markets
• Global Institutional Players: Investment funds, family offices, and institutional investors seeking diversified exposure to US aerospace and defense sectors
• DeFi Participants: Cryptocurrency and DeFi enthusiasts looking to bridge traditional assets with decentralized finance protocols
• 24/7 Traders: Active traders who benefit from extended trading hours beyond traditional market schedules

Understanding the Underlying Asset

The underlying ITA ETF focuses on US aerospace and defense companies, providing exposure to a sector that includes major defense contractors, aircraft manufacturers, and aerospace technology companies. This sector typically includes industry giants such as Boeing, Lockheed Martin, Raytheon Technologies, and other key players in the defense and aerospace industries.

By tokenizing ITA, ITAON maintains the same sectoral exposure and risk-return characteristics while adding the benefits of blockchain-based accessibility and trading flexibility.

Technology and Infrastructure

ITAON operates on Ondo Finance's tokenization infrastructure, which bridges traditional finance with blockchain technology. The platform ensures:

• Regulatory Compliance: Adherence to applicable securities regulations and compliance frameworks
• Secure Custody: Professional custody of underlying ETF shares backing the tokenized representation
• Transparent Pricing: Real-time pricing that reflects the underlying ITA ETF value
• Audit Trail: Blockchain-based transparency for all minting and redemption activities

Important Considerations and Restrictions

While ITAON offers significant advantages, potential investors should be aware of several important factors:

• Regulatory Restrictions: Additional restrictions apply depending on jurisdiction and investor classification
• Technology Risk: As a blockchain-based asset, ITAON carries smart contract and technology-related risks
• Liquidity Considerations: While designed to mirror traditional ETF liquidity, tokenized versions may experience different liquidity dynamics
• Compliance Requirements: Investors must ensure compliance with local regulations regarding digital asset investing

Getting Started with ITAON

Interested investors can learn more about ITAON and Ondo's tokenized securities platform by visiting ondo.finance/global-markets. The platform provides comprehensive information about eligibility requirements, trading procedures, and regulatory considerations for different jurisdictions.

Before investing, potential tokenholders should carefully review all applicable terms, conditions, and restrictions that may apply based on their location and investor status. Professional financial advice is recommended to understand the implications of investing in tokenized securities.

Future Implications

ITAON represents part of a broader trend toward the tokenization of traditional financial assets. This innovation could potentially reshape how global investors access US markets, offering a glimpse into the future of cross-border investing and the integration of traditional finance with blockchain technology.

As the tokenized securities space continues to evolve, products like ITAON may become increasingly important tools for global portfolio diversification and international market access.