4 days ago
Ondo Finance and ineligible counsel from Davis Polk & Wardwell met with the US Securities and Exchange Commission’s Crypto Task Force connected April 24 to sermon regulatory pathways for tokenized versions of publically traded US securities, according to a memorandum reviewed by the agency’s staff.
The meetings focused connected structuring options and regulatory considerations for issuing tokenized securities, peculiarly those referencing assets specified arsenic US equities and fixed-income instruments.
The topics listed revealed that Ondo’s presumption addressed regulatory challenges, including registration requirements, broker-dealer obligations, marketplace operation rules, fiscal crimes compliance, and the exertion of authorities firm laws.
The steadfast projected a treatment connected structuring approaches that would let for the compliant issuance and organisation of tokenized securities portion exploring possibilities for participating successful a regulatory sandbox oregon targeted relief.
Additionally, Ondo’s ineligible squad outlined cardinal considerations astir capitalist protection, anti-money laundering compliance, and the exertion of the Exchange Act to token-based issuance models.
Expanding institutional-grade tokenization
The inaugural marks different measurement successful Ondo’s broader propulsion to integrate accepted fiscal assets into blockchain-native environments. The steadfast presently manages implicit $1 cardinal successful tokenized products, representing 16.4% of the $6.15 cardinal tokenized US Treasuries market.
The Ondo Short-Term US Government Bond Fund (OUSG) is simply a blockchain-based money that tokenizes vulnerability to short-term US Treasuries. Its superior backing is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), and the money aims to present output portion maintaining liquidity astatine each times.
Meanwhile, a operation of short-term Treasuries and request deposits held with banks secures Ondo’s US Dollar Yield Token (USDY).
Designed to mimic the accessibility of stablecoins, USDY targets non-US investors seeking vulnerability to US dollar-denominated returns without utilizing accepted fiscal intermediaries.
Both products correspond a increasing plus people wrong tokenized finance, consisting of applying blockchain infrastructure to wrapper and negociate real-world securities successful a digitally autochthonal format.
SEC engagement
The gathering represents portion of a broader manufacture effort to question clarity connected regulatory guidelines since SEC enactment changed successful January.
Since creating its Crypto Task Force connected Jan. 21, the regulator has held 81 meetings with cardinal figures from the crypto industry. The meetings progressive discussions astir a wide scope of subjects, including implementing staking successful exchange-traded products (ETPs) and the interaction of marketplace manipulation connected centralized platforms.
These movements item however the regulator is present unfastened to engaging with the crypto manufacture nether the President Donald Trump administration.
The station Ondo meets with SEC Crypto Task Force to sermon tokenizing US securities appeared archetypal connected CryptoSlate.
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