ONDO Finance and legal adviser to Davis Polk & Wardwell met the Crypto Task Force of the US Securities and Exchange Commission on 24 April to discuss regulatory paths for tokenized versions of listed American effects, oneccording to one memorandum Reviewed by the staff of the office.
The meetings were aimed at structuring options and legal considerations for issuing tokenized effects, in particular those refer to assets such as US shares and fixed -income instruments.
The aforementioned topics showed that the presentation of ONDO approached regulatory challenges, including registration requirements, obligations of broker dealer, rules for market structure, compliance with the financial crimes and the application of state laws.
The company proposed a discussion about structuring approaches that would make the conforming issue and distribution of Tokenized effects possible, while the possibilities for participation in a regulatory sandbox or targeted exemption would be investigated.
In addition, the legal team of ONDO outlined important considerations on investor protection, anti-money laundering practice and the application of the Exchange ACT on token-based issue models.
Expansion of tokenization of institutional quality
The initiative marks another step in the wider push of ONDO to integrate traditional financial assets into blockchain-native environments. The company currently manages more than $ 1 billion in tokenized products and represents 16.4% of the $ 6.15 billion tokenized American treasuries market.
The ONDO short-term US Government Bond Fund (OASG) is a blockchain-based fund that increases exposure to short-term American treasury. The primary support is the BlackRock USD Institutional Digital Liquuidity Fund (Buidl), and the Fund is intended to deliver yields at all times.
In the meantime, a combination of short -term treasuries and demand deposits that are kept at banks protects the US Dollar Yield Token (USDY) from ONDO.
Designed to imitate the accessibility of stablecoins, USDY arranges non-American investors who look for exposure to exposure by using the dollar without using traditional financial intermediaries.
Both products represent a growing activa class within Tokenized financing, consisting of the application of blockchain infrastructure to wrap and manage Real-World effects in a digital format.
Sec involvement
The meeting is part of a broader industry -effort to ask for clarity about the guidelines of the regulations since Sec -Leadership changed in January.
Since Creating his crypto task force on January 21, has held the regulator 81 Meetings With key figures from the crypto industry. The meetings include discussions about a wide range of topics, including the implementation of expansion in exchange -related products (ETPs) and the impact of market manipulation on centralized platforms.
These movements emphasize how the regulator is now open to dealing with the crypto industry under President Donald Trump.