- Ondo seeks approval to tokenize stock exposure on Ethereum
- Model keeps real stocks offchain but tracks ownership onchain
- SEC is showing increasing openness to tokenization
- Tokenized assets could reach trillions in value
Ondo Expands Tokenization Strategy
Ondo Finance is asking the U.S. Securities and Exchange Commission for approval to launch a new model for tokenized equities.
The system would use Ethereum to track ownership of securities in token form.
How the Model Works
Instead of placing actual stocks onchain, Ondo would tokenize the rights to those assets. The real stocks would still be held through traditional financial infrastructure.
This approach aims to improve transparency and efficiency while staying compliant with existing systems.
Regulators Show Growing Support
The SEC has recently signaled openness to tokenization. Commissioner Hester Peirce has encouraged firms to engage directly with regulators.
At the same time, policymakers are working to adapt rules for this new market.
A Rapidly Growing Market
Tokenized real-world assets are currently worth about $23 billion, but projections suggest the market could grow into the trillions within the next decade.
