Ondo Finance saw a 22% surge after its strategic meeting with the SEC’s Crypto Task Force, where the firm discussed regulatory pathways for tokenizing U.S. securities
Ondo witnessed a remarkable 22% surge in its token’s market price following a high-stakes meeting with the U.S. SEC crypto task force. The meeting also included legal counsel from Davis Polk & Wardwell.
At the time of writing, ONDO is swapping hands with $1.01, a 22.48% surge in the past week. This also marks a $3.21B market cap and a 24 hour trading volume of $513.07M
This meeting marked a step foward towards regulatory clarity to the tokenization of traditional U.S. securities, such as equities and fixed-income instruments since Paul Atkins entered office as Chair.
The memorandum reviewed by the SEC’s staff detailed key points discussed during the session. The focus was on exploring regulatory pathways for issuing tokenized versions of publicly traded U.S. securities.
Ondo presented its vision for how these securities could be structured within the confines of existing laws while also addressing regulatory challenges such as registration requirements, broker-dealer obligations, market structure rules, and financial crimes compliance.
A central topic during the meeting was the application of state corporate laws to tokenized securities, which could provide a framework for future issuance models. Ondo’s team also proposed the idea of participating in a regulatory sandbox or seeking targeted relief to streamline the process.
This meeting with the SEC is part of Ondo’s broader push to integrate traditional financial assets into blockchain environments. The company has already made significant strides, managing over $1 billion in tokenized products, representing 16.4% of the $6.15 billion market for tokenized U.S. Treasuries.
Ondo’s Short-Term U.S. Government Bond Fund (OUSG) and U.S. Dollar Yield Token (USDY) are prime examples of its efforts to apply blockchain technology to traditional financial products.
The OUSG fund tokenizes exposure to short-term U.S. Treasuries, backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund aims to offer yield while maintaining liquidity. Meanwhile, USDY offers non-U.S. investors a chance to gain exposure to U.S. dollar-denominated returns without the need for traditional financial intermediaries. These products represent the growing trend of tokenized finance, where blockchain infrastructure is used to manage real-world securities in a digitally native format.
The SEC meeting is part of a broader effort by the regulatory body to engage with the cryptocurrency industry. Since the creation of the SEC’s Crypto Task Force on January 21, the agency has held 81 meetings with key figures from the crypto world. These discussions have covered a range of topics, including the potential for staking in exchange-traded products (ETPs) and the impact of market manipulation on centralized platforms.
The increasing openness of the SEC under new leadership is encouraging for companies like Ondo, who are actively seeking clarity on how to navigate regulatory challenges. As the SEC continues its engagement with the crypto industry, Ondo’s groundbreaking initiatives in tokenized securities are gaining attention, further fueling the surge in its market value.