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- Ondo Finance has submitted a no-action letter request asking the SEC not to pursue enforcement over a proposed tokenized equities model tied to Ethereum.
- The request is linked to Ondo Global Markets, which offers tokenized notes giving non-U.S. investors exposure to U.S.-listed stocks and ETFs.
Ondo Finance is testing how far U.S. regulators are willing to let blockchain infrastructure reach into traditional securities markets without rewriting the rulebook from scratch.
The real-world asset tokenization firm said it has submitted a no-action letter request to the Securities and Exchange Commission seeking confirmation that staff would not recommend enforcement if the company uses Ethereum “for recording and administering certain securities entitlements in tokenized form.” The request is tied to Ondo Global Markets, or OGM, the firm’s platform for tokenized notes linked to U.S.-listed stocks and ETFs for non-U.S. investors.
A narrow request, not a broader rewrite of securities law
Ondo is not asking the SEC to bless all tokenized securities or overhaul existing securities regulation. The company said the request is deliberately narrow and focused on one bounded operating model.
Under that structure, the underlying securities would remain inside the current legal, custody and recordkeeping framework, while certain securities entitlements would also be represented in tokenized form on Ethereum Mainnet.
That distinction matters. Much of the tokenization conversation tends to drift quickly into sweeping claims about replacing Wall Street infrastructure.
Ondo is doing something more incremental here, trying to add an onchain operational layer without disturbing the existing legal spine of the product. BitGo would continue to play a custody role under the proposed model.
Ethereum is being pitched as infrastructure, not ideology
The filing also says something about how tokenization firms are changing their tone. Ondo is not presenting Ethereum as a political alternative to financial markets. It is presenting it as infrastructure that might improve administration, reconciliation, and transfer workflows around regulated products.
Whether the SEC agrees is another matter. A no-action letter would not amount to a formal rulemaking, but it would give Ondo a workable regulatory signal, and perhaps a template others could try to follow. In tokenized equities, that kind of narrow clearance may matter more right now than another round of big promises.
