Ondo Submits SEC Filing To Integrate Blockchain With Securities Framework

TLDR

• Ondo seeks SEC approval for tokenized securities entitlements on Ethereum
• Filing keeps existing custody and legal framework unchanged
• Model targets collateral tracking and faster workflows
• SEC no-action request focuses on a narrow operational upgrade
• Ethereum Mainnet chosen to match Ondo’s current infrastructure

Ondo has submitted a no-action request to the US Securities and Exchange Commission. The request focuses on Ondo Global Markets products. It seeks approval for a limited blockchain-based recordkeeping model. The approach aims to fit within current securities rules.

The company stated that the request is narrow in scope. It does not ask for new laws or broad approvals. Instead, it seeks confirmation that SEC staff would not recommend enforcement action. This would apply if Ondo proceeds with its proposed structure.

Ondo proposes blockchain layer within existing securities framework

Ondo’s model keeps the current legal structure unchanged. The underlying securities remain within existing custody and record systems. Official books and records also stay within traditional frameworks. This ensures continuity in investor protections.

The proposed change involves representing certain securities entitlements on Ethereum Mainnet. These tokenized records would support internal operations. BitGo would act as the custodian for these blockchain-based representations. The setup is limited to specific use cases.

Ondo explained that its products would remain the same. These products are tokenized notes linked to US-listed stocks and ETFs. They mainly serve non-US investors. The blockchain layer would not alter their core structure.

The company stated, “the request is meant to function as a recordkeeping innovation, not a rewrite of market structure.” This reflects a focus on operational efficiency rather than structural change.

Focus on operational efficiency and system consistency

The filing outlines three main areas of improvement. These include better collateral monitoring and faster creation and redemption processes. It also targets simpler reconciliation across product systems. These changes aim to improve efficiency without changing market rules.

Ondo said these improvements are practical and limited. The blockchain layer supports processes already in place. It does not replace existing systems. Instead, it works alongside them.

Ethereum Mainnet was selected due to existing integration. Ondo already operates within Ethereum-based environments. Using the same network helps maintain system consistency. It also reduces technical friction.

The company noted, “public blockchain infrastructure can be useful in regulated markets when paired with the right controls.” This reflects its approach to combining technology with compliance.

SEC engagement and path forward for tokenization model

A no-action letter does not create new regulations. However, it can provide clarity for specific models. Ondo is seeking this clarity before moving forward. This approach supports careful implementation within regulatory boundaries.

The filing builds on earlier industry steps. It follows the DTCC’s December 2025 no-action letter. That letter supported tokenization pilots expected to begin in late 2026. Ondo’s request aligns with these developments.

The company emphasized the importance of early engagement. It stated that clarity is important when multiple market participants are involved. This helps reduce uncertainty and supports smoother adoption.

Ondo said it looks forward to SEC review. It added that the request supports broader discussions on blockchain in regulated markets. The outcome may guide future efforts in combining public blockchain systems with US securities rules.

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