Ondo Token Rises as SEC Introduces Framework for Onchain Stock Trading
The native token of Ondo Finance (ONDO) rose by over 13.6% in a single day following the U.S. Securities and Exchange Commission's introduction of an 'Innovation Exemption' framework aimed at enabling regulated platforms to trade tokenized stocks on blockchain networks. This regulatory move allows eligible Tokenized Securities Venues (TSVs) temporary relief from being treated as traditional exchanges under specific conditions, including limits on trading volume and stock variety. The exemption also supports liquidity providers using automated market maker pools for secondary trading of tokenized National Market System stocks. Ondo Finance's platform, which focuses on connecting blockchain-based assets with traditional financial markets, stands to benefit directly. Ondo has been expanding its services across multiple blockchains like Ethereum, BNB Chain, and Solana while enabling access through various wallets and DeFi applications. The company’s broker-dealer subsidiary is also authorized by FINRA for tokenized equities trading in the U.S., further aligning with the SEC's new framework.
Topics: blockchain financial infrastructure SEC regulation tokenized stocks