Ondo Finance Seeks SEC Approval for Tokenized Securities on Ethereum

Under the proposed model, the underlying equities would remain held through the Depository Trust Company via U.S. broker-dealer Alpaca.

Ethereum News

Ondo Finance has asked the U.S. Securities and Exchange Commission to confirm it will not pursue enforcement action against a proposed model for recording securities entitlements on Ethereum. The firm

a no-action letter request to the SEC on Monday. The request is tied to its Ondo Global Markets platform, which sells tokenized notes that give non-U.S. investors access to U.S.-listed stocks and ETFs. Tokenization

Under the proposed model, the underlying equities would remain held through the Depository Trust Company via U.S. broker-dealer Alpaca. Ondo would issue tokens on the Ethereum network to represent corresponding securities entitlements. Those tokens would be used to manage collateral and maintain records in sync with the off-chain holdings.

The key operational change is a shift in how those entitlements are tracked and administered. Rather than relying on traditional record-keeping alone, Ondo would use Ethereum-based tokens to perform that function on-chain. The no-action request asks the SEC to confirm that this structure would not require broker-dealer registration.