European Expansion for Tokenized Securities
Ondo Global Markets, the company operating Ondo Finance, a prominent US-based tokenization platform, has successfully obtained regulatory approval to provide tokenized stocks to investors within the European Union. This significant development allows Ondo Finance to expand its offerings to include tokenized stocks and Exchange Traded Funds (ETFs) across the EU.
The approval grants access to on-chain US stocks and ETFs for an estimated 500 million investors spread across approximately 30 EU and European Economic Area (EEA) countries. This move marks a substantial step forward in making tokenized securities more accessible to a broader international investor base.
The Landscape of Stock Tokenization
Currently, the tokenization of stocks remains prohibited in the United States. Despite this domestic restriction, US companies are actively pursuing tokenization initiatives and seeking regulatory approvals in various global regions, with Europe being a primary focus. Companies such as Kraken and Robinhood have been notable players in this space. Coinbase, the largest cryptocurrency exchange in the US, has also formally petitioned the Securities and Exchange Commission (SEC) for permission to enable tokenization.
Ondo's Market Position and Growth
This regulatory approval further solidifies Ondo's standing as a leader in the regulated tokenized finance sector. Ondo Global Markets now operates as the largest platform for tokenized equity and ETFs, boasting over $315 million in Total Value Locked (TVL) and a cumulative trading volume exceeding $1 billion. This impressive growth underscores the increasing demand and adoption of tokenized financial products.
Partnerships and Product Offerings
Ondo Finance has established a strategic partnership with BlackRock, the world's largest asset manager. Through this collaboration, Ondo is involved in tokenizing BUIDL, BlackRock's on-chain fund that is backed by US Treasury bonds. This partnership highlights the growing integration of traditional finance with blockchain technology and tokenization.
At the time of reporting, the ONDO token, which has experienced a 20% decline in the past week, was trading at $0.53.