- Ondo Finance submitted a no-action letter request to the SEC on April 13, seeking clearance to record certain securities entitlements in tokenised form on Ethereum Mainnet for its Ondo Global Markets product.
- The proposal would allow BitGo to custody tokenised representations of US-listed stocks and ETFs.
- Ondo framed the request as a narrow recordkeeping innovation, not a rewrite of securities law.
Ondo Finance has asked the US Securities and Exchange Commission (SEC) to confirm it will not recommend enforcement action if the firm records certain securities entitlements in tokenised form on Ethereum (ETH).
The April 13 no-action request focuses on Ondo Global Markets, a platform offering tokenised notes that give non-US investors exposure to the US-listed stocks and exchange-traded funds.
Under the proposed structure, the underlying securities would remain within existing legal and custody systems, including Article 8 frameworks and Depository Trust Company infrastructure, while a parallel token layer on Ethereum would handle operational functions.
Custodian BitGo would manage the tokenised representations, while broker-dealer and transfer agent Alpaca would oversee compliance with key regulatory requirements, including Exchange Act Rules 17a-3, 17a-4, and 15c3-3. This setup is designed to preserve the current regulatory perimeter while introducing blockchain-based efficiencies.
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Operational Upgrade, Says Ondo
Ondo described the approach as a targeted operational upgrade rather than a broader attempt to alter securities law.
The tokenised layer is intended to improve collateral tracking, streamline creation and redemption processes, and simplify reconciliation across its product suite. Ethereum was selected due to its existing integration with Ondo’s infrastructure.
The firm’s request seeks confirmation that this specific model would not trigger enforcement, rather than blanket approval for tokenised securities.
Ondo currently holds about US$3.55B (AU$5.15B) in total value locked, with its ONDO token trading near US$0.25 (AU$0.36), positioning the firm within ongoing efforts to bring regulated financial assets onto public blockchain infrastructure.
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