Ondo Requests Regulatory Clarity for On-Chain Equities
On April 13, 2026, Ondo Finance submitted a no-action letter request to the U.S. Securities and Exchange Commission (SEC), seeking confirmation that the agency would not pursue enforcement action against its proposed model for tokenizing equities exposure on Ethereum, per The Block.
The request centers on Ondo Global Markets, a platform that offers tokenized notes giving non-U.S. investors exposure to U.S.-listed stocks and ETFs. In the new model, Ondo would issue tokens on Ethereum to represent “security entitlements” tied to these underlying assets, while the actual stocks and ETFs continue to be held through the Depository Trust Company (DTC) via U.S. broker-dealer Alpaca.
This setup would allow Ondo to use on-chain tokens for better collateral management and real-time record-keeping, without moving the underlying securities themselves onto the blockchain.
Regulatory Environment Turning Tokenization-Friendly
The filing comes amid a more accommodating stance toward tokenization under the current administration. SEC Commissioner Hester Peirce has publicly encouraged firms exploring tokenized products to engage directly with the agency, while lawmakers on the House Financial Services Committee (including Rep. Andy Barr) have acknowledged that “tokenization of securities is coming,” stressing the need to maintain investor protections.
The SEC has already approved several tokenization-related initiatives, including a rule change allowing Nasdaq to support tokenized share trading. Major players such as the New York Stock Exchange, Robinhood, Kraken, and Coinbase are also advancing on-chain equities offerings.
Market Context and Growth Projections
The tokenized real-world asset (RWA) market currently stands at roughly $23 billion, with Ondo itself accounting for about $2.8 billion of that total, per The Block’s data. Industry analysts project explosive growth, with estimates ranging from $2 trillion to more than $10 trillion by 2030 as tokenization expands across equities, fixed income, real estate, and other asset classes.
Ondo’s proposal represents a pragmatic step: keeping legal ownership of securities in traditional custody while using Ethereum for efficient, transparent record-keeping and collateral management
What This Means for the Industry
If the SEC grants the no-action relief, it could accelerate institutional adoption of tokenized products by providing greater regulatory certainty. For Ethereum, it would further solidify its position as a leading settlement and record-keeping layer for traditional finance use cases.
Bitcoin (BTC) and Ethereum (ETH) prices remain largely stable following the news, while the broader tokenized asset narrative continues to gain traction among both traditional finance institutions and crypto-native players.
