6 December 2025

Ondo Finance Advocates for Accelerated Growth of Tokenized Securities in the U.S.
Ondo Finance Inc. has called on U.S. regulators to expedite the growth of tokenized securities by clarifying existing rules. The firm submitted a proposal to the U.S. Securities and Exchange Commission SEC on December 4, highlighting that unclear regulatory frameworks have hindered domestic progress compared to other markets.
The purpose of this submission to the Commission is to describe what we believe are the root causes limiting tokenization adoption,
Ondo Finance stated. They outlined practical steps the SEC could take to foster greater consensus and offered their expertise to support these actions.
Ondo s roadmap advocates for the SEC to endorse three emerging tokenization models: direct registration, tokenized beneficial ownership linked to securities held in the Depository Trust Company DTC , and new digital securities backed by DTC-held assets. The firm urged the SEC to prioritize the tokenization of securities entitlements held in DTC, seek targeted no-action and exemptive relief to facilitate the launch of compliant products, and recognize permissionless blockchains as suitable settlement layers.
Tokenization efforts now underway are better for investors in numerous respects with fairly modest reforms,
the submission stated. Ondo argued that these measures would enable the United States to regain momentum as other jurisdictions adopt clearer rules supporting tokenization.
While some stakeholders express concerns that tokenization may complicate existing systems or introduce operational challenges, proponents of cryptocurrency argue that on-chain structures enhance transparency, improve settlement efficiency, and expand investor autonomy. Supporters also contend that permissionless blockchain architectures could ultimately increase capital efficiency and provide market participants with more direct ownership rights across financial markets.