Ondo Finance has taken a decisive step in the regulatory conversation around tokenized securities. In a newly released open letter to the U.S. Securities and Exchange Commission (SEC), the company outlines a comprehensive pathway for bringing traditional financial assets onchain without compromising investor protections or legal compliance. The full letter was published publicly after @OndoFinance [...]Ondo Finance has taken a decisive step in the regulatory conversation around tokenized securities. In a newly released open letter to the U.S. Securities and Exchange Commission (SEC), the company outlines a comprehensive pathway for bringing traditional financial assets onchain without compromising investor protections or legal compliance. The full letter was published publicly after @OndoFinance [...]

Ondo Finance Publishes Tokenized Securities Roadmap in Open Letter to SEC

2025/12/07 02:02

Ondo Finance has taken a decisive step in the regulatory conversation around tokenized securities.

In a newly released open letter to the U.S. Securities and Exchange Commission (SEC), the company outlines a comprehensive pathway for bringing traditional financial assets onchain without compromising investor protections or legal compliance.

The full letter was published publicly after @OndoFinance announced the move on X, describing it as a foundational framework for the future of regulated tokenization.

The release comes at a time when onchain stocks are gaining rapid momentum. Ondo Global Markets now holds more than $350 million in total value locked, making it the largest platform offering tokenized stocks and ETFs on public blockchains. The company argues that the industry is shifting, and the world’s largest markets are steadily moving onchain , with Ondo positioning itself at the center of that transition.

A Push for Regulatory Clarity

In the letter, Ondo calls for a structured regulatory framework that enables tokenized securities to operate cleanly within existing U.S. securities laws. Rather than seeking exemptions or special treatment, the firm emphasizes full compliance, ensuring that both issuers and intermediaries remain within established legal requirements.

Ondo states that tokenization, when done correctly, should enhance oversight rather than reduce it. The goal is simple: merge the efficiency of blockchain technology with the investor protection regime that defines U.S. capital markets.

This stance is reflected again in Ondo’s follow-up statement on X, where the company reiterated its commitment to regulatory collaboration and transparency.

Inside the Tokenized Securities Roadmap

Ondo’s roadmap is built around several core principles designed to bridge traditional finance and public blockchain infrastructure. Each component focuses on maintaining compliance while unlocking efficiency, accessibility, and global reach.

1. Full Compliance With U.S. Securities Laws

Ondo stresses that tokenized securities must follow the same rules that govern traditional securities. That includes registration requirements, disclosures, reporting, and all investor-facing protections. According to the letter, tokenization is not a workaround , it is an upgrade layer built on top of the existing system.

2. Flexible Issuance Models

The roadmap supports two issuance structures:

  •  Issuer-led tokenization, where the company offering the asset directly issues a tokenized version
  •  Intermediated or custodial tokenization, where traditional custodians, broker-dealers, or fund managers issue tokenized representations of securities they already handle

This flexibility allows both innovative and legacy financial institutions to participate without redesigning their operational pipelines.

3. Preservation of Investor Protections

Ondo’s framework ensures that bringing assets onchain doesn’t erode investor rights. The company highlights that all required disclosures, reporting standards, suitability rules, and protections remain intact. The blockchain layer simply enables faster processes and more transparent record-keeping.

The message is clear: tokenization should strengthen, not weaken, the regulatory safeguards built over decades.

4. Public Blockchains for Transparency and Settlement

One of the most important parts of the roadmap is the strict preference for public blockchains. Ondo argues that public networks provide:

  •  Real-time settlement
  •  Immutable audit trails
  •  Transparent ownership records
  •  Open and verifiable transaction history

In contrast, private blockchains lack the openness and trust minimization required to support global capital markets at scale.

5. Multi-Chain Architecture for Scale

The roadmap proposes a multi-chain architecture. Tokenized securities should not live on just one chain. Instead, the ecosystem should support interoperability across multiple blockchains to prevent fragmentation, reduce network risk, and maximize user access.

This approach also allows institutions to adopt tokenized assets without committing to a single blockchain’s limitations.

6. Long-Term Vision: 24/7 Global Capital Markets

Looking forward, Ondo imagines a future where capital markets never close. With blockchain rails and tokenized instruments:

  •  Anyone, anywhere, can access regulated financial instruments
  •  Assets trade 24/7
  •  Settlement becomes instantaneous
  •  Fractional ownership allows broader participation

This vision aligns with global trends, where markets increasingly demand speed, accessibility, and transparency.

Why This Matters: Trillions in Assets Could Move Onchain

The strategic importance of Ondo’s submission cannot be overstated. Tokenization of real-world assets (RWAs) is widely considered the next major phase in blockchain adoption. The assets at stake , stocks, bonds, treasuries, ETFs, money-market funds, and credit instruments, represent tens of trillions of dollars.

But without regulatory clarity, the sector risks fragmentation, legal uncertainty, and limited adoption.

Ondo aims to solve that.

By offering regulators a detailed, workable model, the company positions itself as one of the leading voices in the regulated tokenization movement. The roadmap could serve as a blueprint for institutions seeking to bring traditional assets into the onchain environment.

Ondo’s Growing Presence in RWA Leadership

Ondo already commands the largest tokenized securities platform by TVL. Its products, including tokenized U.S. Treasuries and onchain ETFs, have gained traction among both retail and institutional investors looking for compliant, yield-generating blockchain assets.

The firm’s expansion into regulated stock and ETF tokenization further strengthens its position against competitors in the RWA space.

With this SEC submission, Ondo shifts from being a market leader to a policy influencer, shaping not just the technology but the rules that govern it.

A Blueprint for Institutional On-Chain Finance

The roadmap represents more than a proposal. It’s a strategic bid to define how global capital markets transition to blockchain infrastructure. The open letter signals to regulators, financial institutions, and global markets that the next phase of tokenization must be both compliant and scalable.

If adopted or used as a reference framework, Ondo’s roadmap could accelerate the movement of traditional assets onto public blockchains and set the standard for institutions entering the RWA ecosystem.

Ondo believes the future of global markets is onchain , and with this roadmap, it makes a strong case that the transition can happen without sacrificing the legal structure and investor protections that define modern finance.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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