Ondo Finance is seeking regulatory clearance to record securities as tokens on public blockchains, a move that could reshape how tokenized equities settle in the U.S. market. The request signals a direct test of whether regulators will permit blockchain-based infrastructure alongside traditional systems.
The firm has submitted a no-action request to the Securities and Exchange Commission (SEC) asking staff to confirm they will not recommend enforcement under its proposed model. Ondo Global Markets (OGM) currently offers tokenized securities backed 1:1 by U.S. stocks, ETFs, and Treasuries held with licensed broker-dealers. Tokens function as on-chain representations of existing entitlements rather than standalone assets.
Will The SEC Allow Public Blockchain Settlement?
Under the proposal, investors would continue to hold securities through regulated intermediaries, while blockchain infrastructure would handle settlement, collateral tracking, and reconciliation. Ondo argues this approach does not introduce new compliance obligations but modernizes recordkeeping using networks like Ethereum. The platform already spans Ethereum, Solana, and BNB Chain, with over 200 tokenized equities available on Solana alone.
The company reports more than $500 million in total value locked (TVL) across its tokenized products and approximately $9 billion in cumulative trading volume. This positions OGM among the larger platforms in the tokenized securities segment, which remains small relative to traditional equity markets but is expanding globally. Similar initiatives in Europe and Asia have begun integrating tokenized assets with stablecoin-based settlement layers.
Ondo’s latest filing builds on a shifting regulatory backdrop. In December 2025, the SEC closed an investigation into the firm’s tokenized Treasury products without charges, a decision viewed by the company as validation of its compliance framework. Ondo has since urged regulators to formally recognize public blockchains as permissible infrastructure for securities markets. Can existing regulatory frameworks accommodate decentralized settlement without altering core investor protections?
A favorable response could establish a precedent for broader adoption of tokenized equities on permissionless networks. The next catalyst will be the SEC’s position on the no-action request and whether it signals acceptance of hybrid models that combine traditional custody with on-chain settlement rails.
