Ondo Finance's SEC Request Could Template Tokenized Securities Settlement on Ethereum
FW
Freya Waverly
SEC retail investor rule · Apr 13, 2026
Source: DojiDoji Data Terminal
Non-U.S. investors gain exposure to U.S.-listed stocks and ETFs through tokenized notes on the Ondo Global Markets (OGM) platform. To improve this process, Ondo Finance has filed a no-action request with the SEC, seeking confirmation that recording securities entitlements on Ethereum Mainnet will not trigger enforcement action.
This model treats the tokens as an operational overlay on top of existing broker-dealer custody and recordkeeping frameworks. Under the proposed structure, BitGo will serve as custodian for the tokenized securities entitlements. The underlying securities and official books and records remain within the existing legal structure, meaning the tokens function as on-chain wrappers around traditional entitlements.
Ondo argues that this on-chain layer would allow for cleaner collateral monitoring, more efficient creation-and-redemption workflows, and simpler reconciliation across the OGM product stack. The company has positioned OGM as the world's largest tokenized stock and ETF platform by total value locked, which currently stands at $3.55 billion.
The request follows a December 2025 closure of a confidential SEC investigation into Ondo's tokenized U.S. Treasuries and its ONDO token without any charges. If SEC staff approve the model, it would represent the first formal regulatory confirmation that public blockchain infrastructure can function within the U.S. securities recordkeeping system, establishing a regulatory template for other real-world asset tokenization firms.