Nano-based delivery systems have greatly enhanced our ability to administer and target drugs and macromolecules to their therapeutic targets. Because of chemically modifying them and their functional effects on cells, oligonucleotide drugs have great therapeutic potential. Oligonucleotide drugs have off-target effects and stability issues, so they can be encapsulated functionalized vesicles with targeting ligands such as antibodies (Ab). Herein, we describe a novel, scalable and straightforward approach to produce functionalized vesicles, which we call the Functionalized Lipid Insertion Method. This method differs significantly from an older approach for producing functionalized vesicles referred to as the Detergent-Dialysis Method. The older method requires excess detergent and extensive dialysis over many hours to produce the functionalized vesicles. With the Functionalized Lipid Insertion Method, only the functionalized lipid is detergent-solubilized during the formation of the functionalized vesicle. The approach reduces the dialysis time, keeps the vesicle intact, and orients the functionalized lipid to improve targeting compared to the older method. The dynamic light scattering (DLS) technique demonstrates that vesicle size is sensitive to the initial solubilized component mixture by the older method. In contrast, functionalized vesicle size increases in size are consistent with functionalized lipid insertion into the vesicle. In vitro, functionalized vesicles using our approach are able to deliver oligonucleotides selectively and can functionally affect liver cancer HepG2 cells. Functionalized vesicles produced by this method can also achieve targeted delivery of oligonucleotides in mice without inducing a significant immune response through cytokine production or showing physical signs of an immune response. The industrial and therapeutic significance and implications of functionalized vesicles produced by our method are also discussed.