Ondo Finance's SEC Request Targets Operational Efficiency over Legal Ownership
Non-U.S. investors gain exposure to U.S.-listed stocks and ETFs through Ondo Global Markets. This exposure is managed through a proposed blockchain-based recordkeeping framework that uses the Ethereum Mainnet to record and administer tokenized securities entitlements. The framework is designed to support internal operational processes, including collateral monitoring, reconciliation, and redemption and creation workflows. Underlying assets are held through the the Depository Trust Company via U.S. broker-dealer Alpaca, while legal ownership and custody remain in regulated U.S. frameworks held by BitGo. Ondo Finance has submitted a no-action letter request to the SEC requesting confirmation that the SEC will not take enforcement action against this specific model.
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