Ondo Finance has made significant strides by acquiring broker-dealer Oasis Pro, which holds key licenses from the SEC and FINRA. This strategic move allows Ondo to issue and trade tokenised securities fully compliant with U.S. regulations, marking a pivotal development in its quest to integrate traditional financial instruments with blockchain technology.
By securing Oasis Pro, Ondo gains a comprehensive legal framework that enables it to bring conventional securities onto the blockchain. This acquisition is particularly timely, as there is growing interest in tokenised assets, also known as real-world assets (RWAs), across both crypto and traditional financial landscapes. While initial ventures into tokenised U.S. stocks and ETFs have largely catered to international investors, the regulatory clarity provided by Oasis Pro’s licenses is expected to create opportunities for domestic institutions in the U.S. market.
Oasis Pro’s regulatory credentials include registration as a broker-dealer, an Alternative Trading System, and a Transfer Agent, which positions the company at the forefront of crypto regulation discussions. It is actively involved in FINRA’s Crypto Working Group, influencing the evolution of tokenisation regulations.
Globally, the exploration of tokenisation has been advancing in regions like the Middle East. Dubai, for instance, has seen initiatives such as Ripple’s XRP Ledger being utilised for real estate tokenisation. However, the U.S. market poses its own complexities, necessitating a more structured approach to attract institutional players.
As part of its growth strategy, Ondo Finance recently announced a collaborative venture with Pantera Capital, launching a $250 million (AU$381 million) fund named Ondo Catalyst. This initiative aims to invest in startups developing RWA products through direct equity investments and token allocations. According to Ian de Bode, Ondo’s Chief Strategy Officer, there is an emerging “arms race” in the financial sector as competitors vie for dominance in ETF products and tokenised stocks, which are anticipated to be the next frontier in financial innovation.
With the integration of Oasis Pro, Ondo is well-equipped to manage the issuance, trading, and oversight of tokenised assets within the framework of U.S. law. This position not only strengthens its market stance but also establishes a potential precedent for other DeFi firms aiming to merge traditional finance with blockchain solutions. However, the long-term success of this approach remains to be seen as the landscape continues to evolve.
