Ondo specialized in tokenizing publicly traded equities during a period when few competitors offered similar services.
Ondo Token News
Federal regulators terminated an investigation into the real-world asset platform without filing charges, Ondo Finance announced Monday. The Securities and Exchange Commission closed a confidential probe launched in October 2023 under former Chair Gary Gensler.
The investigation examined whether Ondo's tokenization business complied with securities laws. Regulators also evaluated whether the company's ONDO token qualified as a security requiring registration with federal authorities.
Ondo specialized in tokenizing publicly traded equities during a period when few competitors offered similar services. The New York-based firm attracted regulatory scrutiny as international investors increasingly used its platform for blockchain-based access to traditional assets.
The company cooperated fully with SEC requests throughout the multi-year review. Ondo provided documentation of compliance procedures and maintained its approach aligned with investor protection standards required under federal law.
ONDO gained approximately 5% Monday following the announcement. The price increase signals investor confidence in the company's regulatory standing and optimism about growth prospects for the broader tokenization sector.
The resolution follows a pattern under current SEC Chair Paul Atkins, who has overseen the closure of enforcement actions against Coinbase, Ripple, Kraken, and other major cryptocurrency firms. The shift reflects Washington's reassessment of digital asset oversight policies implemented during the previous administration.
Regulators have begun formally studying how blockchain technology could improve securities markets. The SEC's Investor Advisory Committee is evaluating potential applications for issuing, trading, and settling traditional equities using distributed ledger infrastructure.
Tokenized U.S. Treasury securities rank among the fastest-growing cryptocurrency categories. Products offering blockchain-based exposure to stocks are attracting similar investor interest as the industry develops regulated infrastructure for traditional assets on digital platforms.
Most tokenization platforms currently serve international clients. U.S. residents maintain straightforward access to equities through conventional brokerages, reducing domestic demand for tokenized versions compared to regions with limited access to American securities markets.
Ondo received European authorization in November to offer tokenized stocks to EU investors. Competitor Securitize obtained similar approval to operate as both an investment firm and trading system, positioning both companies as early infrastructure providers for regulated RWA products across major markets.
The company schedules a summit February 3 in New York to present its strategic roadmap. The event will convene regulators, policymakers, and traditional finance executives to discuss expanding tokenized securities adoption in U.S. capital markets.
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