Ondo seeks SEC no-action on recording securities entitlements as tokens on Ethereum for Ondo Global Markets

Ondo Finance has filed a no-action request with the U.S. Securities and Exchange Commission seeking clarity on a specific model for recording securities entitlements as tokens on public blockchains for its Ondo Global Markets (OGM) platform.

In its submission, the firm says it is looking for regulatory “bless[ing]” of how securities interests would be recorded and transferred on-chain, characterizing the change as an operational upgrade rather than the creation of a new asset class.

How Ondo’s model would work

Ondo says that, under the proposed approach, investors would continue to hold securities entitlements through regulated intermediaries. In parallel, blockchain tokens would be used for functions such as “collateral monitoring, redemptions and reconciliation,” with Ethereum acting as a recordkeeping and settlement rail that operates alongside existing Depository Trust Company and broker-dealer systems.

The company argues that tokenization itself does not create new compliance obligations. Instead, it says the key requirements remain adherence to existing rules governing registration, custody, transfer agency, and disclosures, regardless of the underlying database technology.

Existing OGM structure and scale

OGM already offers tokenized notes and securities backed 1:1 by U.S. stocks, ETFs, and Treasuries held at licensed U.S. broker-dealers. On-chain tokens are described as wrappers around traditional entitlements.

The platform has expanded to Ethereum, Solana, and BNB Chain. Ondo’s February update on X cited more than 200 tokenized U.S. stocks and ETFs available on Solana, and reported total value locked across its tokenized products of more than $500 million, alongside roughly $9 billion in cumulative trading volume.

Regulatory context and prior SEC action

The no-action request comes after a notable change in Ondo’s regulatory posture. In December 2025, the SEC closed a confidential investigation into Ondo’s tokenized U.S. Treasuries and its ONDO token “without any charges.” Yahoo Finance characterized the outcome as a “watershed moment for tokenized securities compliance,” while Ondo described it as a de facto validation of its approach under U.S. securities law.

Separately, in late 2025 Ondo submitted a “roadmap for tokenized securities” to the SEC’s Crypto Task Force. That submission urged the agency to formally recognize and permit the use of public, permissionless blockchains in tokenized securities markets and to provide targeted relief for models in which tokens represent claims on securities held in DTC or with U.S. custodial broker-dealers.

Potential impact if SEC staff agree

Ondo frames the current no-action bid as a practical test of that roadmap. If SEC staff respond favorably, the firm says it would be a clear signal that U.S. regulators are prepared to tolerate—and potentially bless—permissionless-chain settlement for tokenized real-world assets, provided the traditional entitlements framework remains intact.

Ondo also points to developments outside the U.S., where bank-linked stablecoins and tokenized money-market funds are increasingly used as settlement layers for tokenized treasuries and equities.

For Ondo, the company’s stated objective is straightforward: a favorable response could support a path to fully registered, on-chain securities distribution in the U.S. across Ethereum and other public networks, rather than limiting tokenization to private, permissioned systems.