Ondo Finance has submitted a no-action request to the U.S. Securities and Exchange Commission, asking staff not to recommend enforcement over a plan to record stock entitlements on Ethereum. The filing, dated April 13, 2026, would allow tokenized representations of security entitlements in U.S.-listed equities and ETFs to exist on a public blockchain while traditional brokers maintain the official books and records.
What Ondo Finance Is Asking the SEC to Approve
The no-action request asks SEC staff to confirm that broker-dealers supporting customers’ use of Ethereum for recordkeeping of tokenized security entitlements would not trigger enforcement action. This is a regulatory request, not a confirmed approval.
The proposal covers security entitlements in U.S.-listed equities and ETFs held through the Depository Trust Company as collateral for Ondo Global Markets products. Ondo explicitly states the request does not concern the issuance of OGM products themselves.
OGM is currently the largest platform tokenizing publicly traded securities, offering tokenized notes secured by over 260 U.S. stocks and ETFs to non-U.S. investors. The U.S. dollar value of collateral backing those products must total at least 100.5% of the value of OGM products outstanding.
How Ethereum-Based Stock Entitlements Would Work
Under the proposed structure, Oasis Pro TA would mint tokens representing security entitlements on Ethereum Mainnet. The resulting tokens would be held in a designated wallet at BitGo, while Alpaca Securities maintains the official off-chain books and records.
Stock entitlements in this context are not direct ownership of underlying shares. They are records of a beneficial interest in securities held through DTC, tokenized on Ethereum to provide transparency and portability without replacing the traditional custody chain.
Ondo stated it chose Ethereum because “OGM already operates in Ethereum and Ethereum-compatible environments.” The network, which currently trades at $2,253.42 with a market capitalization of roughly $271.8 billion, serves as the settlement and recordkeeping layer in the proposal.
Absent objections by the SEC or FINRA, Oasis Pro TA, Alpaca, and BitGo are prepared to commence the program in the second quarter of 2026. Compliance, custody, and transfer restrictions remain embedded in the existing broker-dealer framework rather than shifting entirely on-chain.
Why the SEC Request Matters for Tokenized RWAs
The filing builds on prior engagement between Ondo and the SEC. Ondo met with the SEC’s Crypto Task Force staff in April 2025 to discuss issuing and selling wrapped, tokenized versions of publicly traded U.S. securities. In December 2025, Ondo submitted a roadmap urging the SEC to support models involving DTC-held security entitlements on public blockchains.
Ondo’s request also leans on a direct precedent: the SEC staff’s December 11, 2025 no-action letter allowing DTC itself to pilot tokenized security-entitlement recordkeeping. Ondo argues that if DTC can do it, a participant-driven version should also be permitted. This mirrors the broader push to bring regulated securities exposure on-chain through Ethereum infrastructure.
Regulatory clarity is the primary bottleneck for institutional adoption of tokenized real-world assets. A positive SEC response to Ondo’s request could establish a template for other firms seeking to use public blockchains as a supplementary recordkeeping layer for traditional securities, potentially accelerating the pace at which Ethereum’s infrastructure is used for regulated financial products.
The filing arrives during a period of extreme fear in crypto markets, with the Fear & Greed Index sitting at 12. The risk-off environment contrasts with the institutional infrastructure framing of Ondo’s proposal, which positions tokenized securities as a market-access upgrade rather than a speculative instrument. Meanwhile, traditional finance flows continue, with Bitcoin ETFs recording sustained inflows even as broader sentiment weakens.
No SEC response or no-action relief has been issued yet. The available evidence confirms the request was filed, not that approval has been granted.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
