Ondo Dives Headfirst Into Regulatory Waters—Meets SEC Crypto Task Force on Tokenized Securities

Wall Street’s favorite buzzword meets its toughest gatekeeper. Ondo Finance just sat down with the SEC’s Crypto Task Force to push the boundaries of tokenizing US securities—because what’s finance without a little regulatory theater?

Key details still under wraps, but insiders hint this could be the make-or-break moment for institutional crypto adoption. Will the SEC play ball, or drop the hammer on another ’innovation’ threatening their paperwork empire?

One thing’s certain: bankers will still get their bonuses regardless of the outcome.

Expanding institutional-grade tokenization

The initiative marks another step in Ondo’s broader push to integrate traditional financial assets into blockchain-native environments. The firm currently manages over $1 billion in tokenized products, representing 16.4% of the $6.15 billion tokenized US Treasuries market.

The ONDO Short-Term US Government Bond Fund (OUSG) is a blockchain-based fund that tokenizes exposure to short-term US Treasuries. Its primary backing is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), and the fund aims to deliver yield while maintaining liquidity at all times.

Meanwhile, a combination of short-term Treasuries and demand deposits held with banks secures Ondo’s US Dollar Yield Token (USDY). 

Designed to mimic the accessibility of stablecoins, USDY targets non-US investors seeking exposure to US dollar-denominated returns without using traditional financial intermediaries.

Both products represent a growing asset class within tokenized finance, consisting of applying blockchain infrastructure to wrap and manage real-world securities in a digitally native format.

SEC engagement

The meeting represents part of a broader industry effort to seek clarity on regulatory guidelines since SEC leadership changed in January.

Since creating its Crypto Task Force on Jan. 21, the regulator has held with key figures from the crypto industry. The meetings involved discussions around a wide range of subjects, including implementing staking in exchange-traded products (ETPs) and the impact of market manipulation on centralized platforms.

These movements highlight how the regulator is now open to engaging with the crypto industry under the President Donald Trump administration.