tl;dr
Ondo Finance and legal counsel from Davis Polk & Wardwell met with the US Securities and Exchange Commission’s Crypto Task Force on April 24 to discuss regulatory pathways for tokenized versions of publicly traded US securities. The discussions focused on structuring options, regulatory challenges, ...
Ondo Finance met with the US Securities and Exchange Commission’s Crypto Task Force on April 24 to discuss regulatory frameworks and compliance for issuing tokenized US securities. The discussions centered on structuring options, regulatory challenges, investor protection, anti-money laundering compliance, and how the Exchange Act applies to token-based issuance models.
Ondo Finance, alongside legal counsel from Davis Polk & Wardwell, proposed approaches for compliant issuance and distribution of tokenized securities and explored opportunities to participate in a regulatory sandbox or seek targeted relief. Currently managing over $1 billion in tokenized products, Ondo offers blockchain-based exposure to US Treasuries through funds like the Ondo Short-Term US Government Bond Fund and the US Dollar Yield Token, which provides access to US dollar-denominated returns.
This meeting is part of a wider SEC initiative since the creation of its Crypto Task Force in January, aiming to engage with the crypto industry and clarify regulatory guidelines. The SEC has held 81 meetings with crypto industry leaders, addressing topics such as staking in exchange-traded products and the impact of market manipulation on centralized platforms.
Ondo's efforts exemplify the growing institutional-grade tokenization movement, where traditional financial assets are integrated into blockchain environments to create digitally native securities with enhanced accessibility and compliance measures. This evolving dialogue between regulators and innovators marks a significant step toward mainstream adoption of tokenized finance.