Ondo Seeks SEC Nod for Onchain Layer in Markets

• Ondo filed for SEC no-action relief to deploy an onchain layer for OGM without changing custody, records, or legal protections.
• The model adds Ethereum-based token records for entitlements, managed by BitGo, while official books remain offchain.
• Ondo targets better collateral tracking, faster workflows, and simpler reconciliation using a parallel blockchain layer.

Ondo Finance filed a no-action request with the U.S. Securities and Exchange Commission to support an onchain layer for Ondo Global Markets products. The filing seeks confirmation that SEC staff would not pursue enforcement if the model proceeds. Ondo said the request focuses on improving operations without altering legal protections or market structure.

Filing Targets Operational Upgrades

According to Ondo Finance, the proposal keeps existing securities frameworks fully intact. OGM products would remain tokenized notes offering exposure to U.S.-listed stocks and ETFs. The underlying assets would stay within current custody, recordkeeping, and legal systems.

However, the model introduces a limited onchain representation of certain securities entitlements. These tokenized records would exist on Ethereum Mainnet alongside traditional systems. Custodian BitGo would manage these representations to support internal processes.

Notably, Ondo said this approach does not replace official books and records. Instead, it adds a parallel layer designed to improve operational efficiency. The filing emphasizes continuity rather than structural change.

Blockchain Layer Aims to Improve Workflows

The company outlined specific areas where the onchain layer could improve performance. First, it would enhance collateral monitoring for OGM products through transparent tracking. Second, it could streamline creation and redemption workflows.

In addition, Ondo said reconciliation across the product stack would become simpler. These improvements rely on maintaining the existing system while adding targeted blockchain functionality. According to Ondo, the goal centers on operational clarity rather than redesigning financial products.

Moreover, the firm noted that OGM already operates within Ethereum-compatible environments. Using Ethereum Mainnet reduces friction and maintains system consistency. This integration supports smoother adoption without introducing new infrastructure risks.

Request Seeks Clarity Under Existing Rules

Ondo Finance stated that the no-action request does not seek new regulations. Instead, it asks for confirmation that the proposed structure fits within current securities laws. The company said this step allows a controlled rollout under regulatory oversight.

According to Ondo, a no-action position would enable a specific model to proceed without waiting for broader rulemaking. The filing frames the proposal as a narrow, supervised adjustment to an existing product framework.

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