Representatives from Ondo Finance met with the U.S. Securities and Exchange Commission (SEC) to discuss ways of issuing and selling tokenized U.S. securities in compliant ways.
Ondo Finance is a decentralized finance (DeFi) platform that tokenizes real-world assets (RWAs) such as U.S. Treasuries, stocks, bonds, and exchange-traded funds (ETFs). It is one of the pioneering projects engaged in tokenization of RWAs.
The platform aims to bridge the gap between decentralized finance (DeFi) and traditional finance (TradFi) by offering on-chain investment products.
The SEC released a memorandum on Apr. 24 as per which representatives from Ondo Finance and Davis Polk & Wardwell LLP met the SEC’s crypto task force on Apr. 24.
Ondo Finance representatives included founder and CEO Nathan Allman, CSO Ian De Bode, and general counsel Mark Janoff.
The discussion involved the Web3 firm’s proposal for issuing and selling wrapped, tokenized versions of publicly traded U.S. securities. The topics under the agenda included structural models of tokenized securities, registration requirements, broker-dealer requirements, market structure regulations, financial crimes compliance, and state corporate laws.
The DeFi platform also discussed securing a sandbox or other such relief. A sandbox is a facility offered by a regulator that allows a crypto firm to test the latest financial products and services using emerging technologies in a controlled environment before full-scale deployment.
The ONDO token rallied more than 10% immediately after the SEC sharing the memorandum. It was trading at $1.01 at press time. However, its price is still more than 50% lower than the all-time high (ATH) of $2.14 that it hit on Dec. 16, 2024.
