Ondo Finance has submitted a No-Action Letter application to the U.S. Securities and Exchange Commission (SEC) regarding its Ondo Global Markets (OGM) product. According to Foresight News, the application is limited in scope, maintaining the OGM product's focus on providing tokenized notes for U.S. stocks and ETFs to non-U.S. investors. The underlying securities and official ledger records will remain within the existing custody system, held by BitGo.
The main change involves recording related securities interests in tokenized form on the Ethereum mainnet under limited circumstances. This aims to enhance collateral monitoring, subscription and redemption processes, and reconciliation operations.
Ondo Finance emphasizes that this move is an operational improvement to the existing product rather than a restructuring of the current market framework. A No-Action Letter is an informal regulatory tool used by the SEC, allowing companies to seek confirmation that SEC staff will not recommend enforcement action for new products or models. If granted, it provides regulatory tacit approval to proceed with business before formal legislative procedures are completed.