From DeFi infrastructure to RWA leaders, how does Ondo seize every market opportunity?

Deng Tong, Golden Finance

December 9, 2025, Ondo Finance announced: The U.S. Securities and Exchange Commission’s secret investigation into Ondo has concluded without any charges. “The investigation aimed to assess whether Ondo’s tokenization of certain real-world assets complies with federal securities laws and whether the ONDO token qualifies as a security.”

###1. Official Statement from Ondo Finance’s Official Blog

Major Step Forward in US Tokenized Securities

Ondo Finance has received formal notice that a long-running, secret investigation initiated during the Biden administration by the U.S. Securities and Exchange Commission (SEC), which involved strict scrutiny of digital asset companies, has concluded without any charges.

The investigation focused on whether Ondo’s tokenization of certain real-world assets complies with federal securities laws, and whether the ONDO token is a security. Ondo actively cooperated throughout the process. Ondo has always believed that a regulated, transparent tokenization model like theirs not only aligns with investor protection principles but also strengthens them.

This moment is not only a significant milestone for Ondo but also for the entire tokenization industry.

At the start of the 2024 investigation, the regulatory environment for digital assets in the U.S. was cautious and chaotic, with occasional overreach by enforcement agencies. Against this backdrop, Ondo:

1. Became the first and largest tokenization platform for U.S. Treasury securities;
2. One of the few companies focusing on large-scale tokenized listings of stocks;
3. Quickly gained favor among investors worldwide.

Early beginnings and success naturally attract scrutiny.

Amid policy discussions around the collapse of cryptocurrency exchanges and the proliferation of speculative tokens, Ondo instead leveraged public blockchain to build practical, user-friendly, and regulated financial products. As a result, innovators dedicated to developing the safest assets in traditional finance found themselves drawn into broader enforcement actions.

Ondo’s growth and leadership in the emerging tokenization space made us a focal point, yet it was not a reasonable target for investigation. With the investigation now concluded, we will continue to uphold our consistent principles, remaining committed to innovation, compliance, security, and investor protection.

Shifts in Washington: Clarifying the Path for Tokenized Securities

This decision also reflects a broader shift in U.S. policy.

Regulators are re-evaluating their digital asset policies from the Biden era. Washington has begun to reverse or soften some of the aggressive measures taken by the previous administration, recognizing that innovation and investor protection are not mutually exclusive.

Tokenization is now officially on the agenda of the U.S. Securities and Exchange Commission. The SEC’s Investor Advisory Committee is evaluating how tokenization can revolutionize the issuance, trading, and settlement of public stocks, a stark contrast to the SEC’s recent enforcement-first stance.

The market has already provided the answer: the adoption rate of tokenization technology is accelerating. Tokenized U.S. Treasury securities have become one of the fastest-growing asset classes on-chain, and recently launched tokenized stocks are also demonstrating strong growth momentum.

U.S. infrastructure is continuously evolving to support tokenization. Recently, Ondo acquired Oasis Pro, obtaining broker-dealer, Alternative Trading System (ATS), and transfer agent licenses, establishing a fully regulated foundation for its tokenized securities business in the U.S.

The resolution of the SEC investigation marks the end of one chapter and the beginning of another for Ondo. In short, the time for tokenized securities to become a core component of the U.S. capital markets has matured. The future of global finance, including the U.S. capital markets, will move toward on-chain solutions, with Ondo leading this transformation.

What’s next? On February 3, 2026, at the Ondo Summit in New York, we will share the next phase of our roadmap, bringing together leading regulators, policymakers, and executives from traditional finance to articulate our vision for the new era of on-chain finance.

###2. Overview of Ondo’s Development

On July 27, 2021, Ondo Finance officially launched. Founded by Nathan Allman and Pinku Suran, Ondo aims to “accelerate the mainstream adoption of DeFi through fine-tuned risk trading.” The protocol went live on the day of its announcement, initially offering four vaults. Ondo’s goal is “bringing institutional-grade financial products and services to the masses” by tokenizing traditional financial assets such as U.S. Treasuries, money market funds, bonds, stocks/ETFs, allowing ordinary users to earn yields and liquidity from traditional assets.

Ondo’s development trajectory clearly illustrates a strategic upgrade from DeFi infrastructure to a core player in RWA (Real World Assets), with two major versions reflecting industry transformation.

Ondo V1: Focused on DeFi Infrastructure

Ondo V1 was operational on Ethereum at launch, representing the first implementation of the protocol, centered around vaults and liquidity-as-a-service (LaaS) as its core products. During this phase, significant progress included:

• November 2021, Ondo partnered with Fei Protocol to launch LaaS, aiming to replace traditional liquidity mining. LaaS enables projects to increase liquidity for their tokens on decentralized exchanges. Projects deposit tokens into Ondo’s liquidity vaults, while Fei matches with an equivalent value in FEI stablecoins. Ondo expanded its LaaS offerings through collaborations:
  • December 2021, Ondo partnered with Frax Finance to enhance LaaS, with Frax providing its FRAX stablecoin for liquidity in tokens like AMP.
  • May 2022, Ondo partnered with Angle Protocol to expand LaaS, with Angle’s agEUR stablecoin providing liquidity for tokens like PAL.

It’s worth noting that Ondo V1 ceased services on March 5, 2024, and users could only withdraw funds thereafter.

Ondo V2: Becoming a Core Player in RWA

Ondo V2 officially launched in January 2023, representing the protocol’s second implementation. Key developments during this phase include:

• January 2023, Ondo announced the launch of three tokenized products backed by U.S. Treasuries and corporate bonds. Although OSTB and OHYG have ceased issuance, Ondo’s U.S. Government Bond Fund (OUSG) remains the most widely circulated token.
• January 2023, Ondo announced Flux Finance (简称Flux), and initiated the Ondo DAO to govern Flux. In February 2023, Flux officially launched, with initial proposals using ONDO tokens approved.
• April 2023, Ondo announced the establishment of the Ondo Money Market Fund (OMMF).
• August 2023, Ondo announced the launch of Ondo USDY (USDY).
• November 2023, Ondo activated the Ondo Bridge.
• January 2024, Ondo Foundation proposed to unlock the “global lock” on ONDO tokens. The proposal detailed the distribution, usage, and future unlocking plans for ONDO. Its approval marked the “public issuance” of ONDO tokens.
• January 2024, Ondo Foundation announced the Ondo Points Program, launching the “First Wave” later that month.
• February 2024, Ondo announced the Ondo Global Markets (Ondo GM) platform, enabling users to access traditional securities on-chain via tokenization.

In March 2024, Ondo Finance launched 24/7/365 instant subscription and redemption services for OUSG, with a significant portion of assets transferred to BlackRock’s BUIDL Treasury Fund.

February 2025, Ondo Global Markets was officially launched. The announcement stated that tokens issued by Ondo GM would be backed 1:1 by underlying assets.

March 2025, TVL reached $1 billion, driven by client onboarding with a compliance-first approach, partnerships with BitGo, and compliant smart contracts.

June 2025, the team announced the formation of the Global Markets Alliance, aiming to “coordinate industry standards and promote interoperability of tokenized securities,” with members including Solana Foundation, Bitget Wallet, Jupiter, Trust Wallet, Rainbow Wallet, BitGo, Fireblocks, 1inch, and Alpaca.

October 2025, Ondo submitted a letter to the SEC proposing amendments to Nasdaq’s rules on trading tokenized securities.

###3. The Secret of Ondo: Seizing Every Market Opportunity

From the above timeline, Ondo has precisely captured every market opportunity—from DeFi to RWA, and now to the conclusion of the SEC investigation. This may be the key to Ondo’s sustained focus and attention.

June 2020 saw the explosive growth of DeFi Summer, with Compound launching governance token COMP and initiating liquidity mining—users could earn COMP rewards by lending and borrowing on the Compound platform. This innovative approach quickly ignited market enthusiasm and became the main driver of DeFi Summer’s momentum. However, by mid-2021, the sustainability of liquidity mining was under question: continued mining caused token inflation, while halting mining risked liquidity shortages.

Ondo identified the pain points in the crypto market and introduced “liquidity-as-a-service”: project teams, based on their needs, could deposit their native tokens into dedicated liquidity pools built by Ondo within flexible time frames; Ondo would pair these tokens with equivalent assets provided by partners like Frax, Fei, and Angle, forming compliant and balanced liquidity pairs; these pairs would then be deployed into designated decentralized exchanges to inject trading liquidity for the project’s native tokens, ensuring smooth trading; after the partnership ends, Ondo would withdraw the liquidity and profits from trading. Assets would first be returned to the project, with fixed interest paid to partners, and remaining profits also shared back.

At this stage, Ondo served as a DeFi infrastructure provider, solving the sustainability issues of liquidity mining.

In 2022, the algorithmic stablecoin UST from the Terra ecosystem and its native token LUNA faced a death spiral collapse, causing a trust crisis in DeFi overnight. In this context, Ondo shifted focus to the rapidly emerging and developing RWA sector.

In 2023, Ondo V2 launched, with core products including tokenized U.S. Treasuries (OUSG). OUSG’s underlying asset is the iShares Short-Term U.S. Treasury ETF under BlackRock, ensuring safety and liquidity, giving OUSG low-risk properties. OUSG can be integrated into DeFi protocols supporting compliant licensed assets like Flux Finance; investors receiving the tokens can transfer ownership, and conduct lending and borrowing via compliant smart contracts. The launch of OUSG demonstrated the feasibility of low-risk traditional asset tokenization.

The SEC, led by Gensler, often targeted the crypto market, leading to a “crypto winter” two years ago. In October 2023, the SEC initiated an investigation into Ondo. The core concern was whether Ondo’s U.S. Treasury tokenization process complied with securities laws, and whether the ONDO token should be classified as a security. The investigation lasted two years.

On October 6, 2025, Ondo completed the acquisition of Oasis Pro, a SEC-licensed broker-dealer, aiming to help develop Ondo’s compliant tokenized securities business; on December 6, Ondo submitted its tokenized securities roadmap to the SEC, advocating support for various ownership models and broader on-chain integration to help the U.S. maintain leadership in asset tokenization transition.

Following these compliance efforts, Ondo faced no charges, marking a significant regulatory victory for the crypto industry.

###Conclusion

From DeFi to RWA, and now to compliance, Ondo has accurately captured industry trends and seized every opportunity brought by market shifts. With the SEC investigation behind it, Ondo is now fully unleashed. Where will Ondo focus next? Perhaps the New York Summit in February 2026 will give us a glimpse.