TLDR
- Ondo seeks SEC approval for tokenized securities entitlements on Ethereum
- The filing leaves the current custody and legal framework unchanged
- The model targets collateral tracking and faster workflow
- The SEC’s no-action request focuses on a narrow operational upgrade
- The Ethereum Mainnet was chosen to match Ondo’s existing infrastructure
Ondo It filed a no-action motion with the U.S. Securities and Exchange Commission. Demand focuses on Ondo Global Markets products. It is seeking approval for a limited blockchain-based record-keeping model. This approach is intended to be consistent with current securities rules.
The company stated that the request is narrow in scope. It does not require new laws or broad approvals. Instead, he seeks assurance that SEC staff will not recommend enforcement actions. This will be implemented if Ondo proceeds with its proposed structure.
Ondo proposes a blockchain layer within the existing securities framework
The Ondo model keeps the existing legal structure unchanged. The underlying securities remain within existing custody and registration systems. Official books and records also remain within traditional frameworks. This ensures continuity of investor protection.
The proposed change includes representing certain securities entitlements on the Ethereum Mainnet. These distinct records will support internal operations. BitGo will act as the custodian of these blockchain-based representations. Setup is limited to specific use cases.
Ondo today filed an application with the Securities and Exchange Commission to demonstrate that public blockchain infrastructure and serious securities regulation can be designed to be compliant.
The reason for applying is practical. Ondo is asking the SEC to confirm it can move forward with a specific form to add a target… pic.twitter.com/O8CiA89xMW
— Ondo Finance (@OndoFinance) April 13, 2026
Ondo He explained That its products remain as they are. These products are token notes linked to US-listed stocks and ETFs. They mainly serve non-US investors. The blockchain layer will not change its infrastructure.
“The order is intended to serve as a record-keeping innovation, not a rewrite of the market structure,” the company stated. This reflects the focus on operational efficiency rather than structural change.
Focus on operational efficiency and system consistency
The recording identifies three main areas for improvement. This includes better collateral monitoring and faster creation and redemption processes. It also targets simpler reconciliation across product systems. These changes are intended to improve efficiency without changing market rules.
Ondo said these improvements are practical and limited. The blockchain layer supports existing processes. It does not replace existing systems. Instead, it works alongside them.
Ethereum Mainnet was chosen due to its existing integration. Ondo It already works within Ethereum-based environments. Using the same grid helps maintain system consistency. It also reduces technical friction.
“Public blockchain infrastructure can be useful in regulated markets when combined with the right controls,” the company noted. This reflects its approach to combining technology and compliance.
SEC Involvement and Path Forward for Model Tokenization
A no-action letter does not create new regulations. However, it can provide clarity for specific models. Ondo seeks this clarity before moving forward. This approach supports careful implementation within organizational boundaries.
Application is based on previous industry steps. This follows a no-action letter issued by the DTCC in December 2025. It upheld that letter Coding Pilots are expected to begin in late 2026. Ondo’s order is in line with these developments.
The company stressed the importance of early participation. She stated that clarity is important when multiple market participants are involved. This helps reduce uncertainty and supports smoother adoption.
Ondo said she looks forward to the SEC’s review. She added that the demand supports broader discussions about blockchain in regulated markets. The finding may guide future efforts in combining public blockchain systems with US securities rules.
