Ondo news

Ondo Finance has petitioned the US Securities and Exchange Commission and Commodity Futures Trading Commission to permit perpetual futures tied to individual stocks, arguing the existing security futures framework can accommodate them. In three Aug. 24 comment letters, the firm stated the lack of a fixed expiration date should not disqualify these contracts, as recurring funding payments serve a function similar to traditional settlement. The request follows Ondo's offshore platform, operating through a Panama-based affiliate, which recorded $8 billion in cumulative trading volume by Aug. 14, roughly six weeks after launch. Ondo urged the agencies to bring this activity onshore, while acknowledging exchanges and brokers would still need to comply with registration, margin, and customer-protection rules. Separately, the Hyperliquid Policy Center made a similar proposal on the same day, citing its own equity perpetuals' $480 billion in trading volume. The SEC and CFTC are currently reviewing rules for blockchain-based derivatives and tokenized securities, with a memorandum of understanding signed in March to coordinate oversight. A regulatory pathway for such products could take 10 to 12 months if rulemaking is pursued.

Ondo Finance has urged US regulators to allow perpetual futures tied to individual stocks to operate onshore, arguing they fit within the existing security futures framework without new rules. In Aug. 24 comment letters to the SEC and CFTC, the firm highlighted that its Panama affiliate already offers such products offshore, with $8 billion in cumulative trading volume since launch. The company contends scheduled funding payments can replace traditional expiration dates. It also noted many underlying stocks trade primarily on US exchanges, recommending that both agencies actively pursue bringing this activity home. The proposal follows broader regulatory efforts to modernize rules for onchain products, including recent SEC and CFTC coordination and a proposed overhaul of transfer agent rules.

Ondo Finance's tokenized version of the iShares China Large-Cap ETF (FXIon) has surpassed 59,000 holders across Ethereum, BNB Chain, and Solana, despite a market cap of roughly $290K. This results in an average holding of about $4.90 per wallet. The token, backed 1:1 by underlying ETF shares, trades near $35-$36 with a circulating supply of about 8,000 tokens, and saw its holder count surge over 9,000% in its first 30 days post-launch in late July 2025. The growth appears driven by the broader Ondo ecosystem rather than FXIon-specific news. Ondo Stocks has exceeded $1 billion in total value locked with $27 billion in cumulative trading volume. The Ondo ecosystem as a whole has crossed 200,000 total holders as of mid-August 2026, a 20% increase in 30 days. No recent regulatory developments or partnerships were announced for FXIon specifically, with growth attributed to momentum in tokenized financial products.

Sky, Securitize, and Ondo Finance dominate the tokenized real-world asset (RWA) market, holding a combined $12.3 billion, or roughly 27%, of the $44.5 billion sector. Tokenized US Treasuries drive most of the growth, which has surged over 1,800% in recent years. Sky leads with $4.5 billion, followed by Securitize at $4.3 billion and Ondo at $3.5 billion. Securitize began trading on the NYSE on July 2, 2026, after a SPAC merger raising about $400 million. The concentration of assets among three issuers presents potential systemic risk, as a failure could trigger redemption pressure on billions in tokenized assets. Despite this, the trio's position highlights blockchain's growing role in traditional finance. The firms' strategies vary: Sky uses RWAs to back its USDS stablecoin, Securitize acts as transfer agent for BlackRock's tokenized Treasury fund, and Ondo offers yield-bearing products like OUSG. Traditional players like Franklin Templeton and WisdomTree have also entered the space, but these three now exemplify the integration of blockchain rails into established financial infrastructure.

Ondo Perps has added tokenized Circle (CRCLon), SpaceX (SPCXon), and SanDisk (SNDKon) as eligible collateral, allowing traders to retain exposure to these assets while using them to support perpetual futures trades. The move enables strategies like the basis trade, where holding the spot token and shorting the perp can capture funding when rates are positive. This integration builds on earlier efforts, including using tokenized SPYon and QQQon as lending collateral in Morpho markets and integrating Chainlink data feeds for asset valuation. Tokenized stocks reached roughly $1.8 billion in market capitalization in August, with Ondo holding about $957 million. Ondo now offers more than 440 tokenized stocks and ETFs across Ethereum, BNB Chain, and Solana, and has surpassed $1 billion in TVL. Nearly $20 million in Ondo Stocks are already serving as productive collateral on the platform, reflecting the growing utility of tokenized equities across spot trading, credit, and leveraged derivatives.

ONDO Finance's IVVon, a tokenized version of BlackRock's iShares Core S&P 500 ETF (IVV), has become the largest onchain ETF with a market cap of approximately $70 million, triple its value at the start of 2026. Most of the tokens, about $69.86 million, are on Ethereum, with smaller presences on BNB Chain and Solana. Each token is backed 1:1 by IVV shares, verified daily, and automatically reinvests dividends. The tokenized ETF market reached $430 million in onchain market cap by May 2026, with IVVon accounting for 16%. ONDO Finance surpassed $1 billion in total value locked by August 2026 and launched a SEC-compliant model in July 2026 to attract US investors previously excluded from IVVon.

Tokenized funds added approximately $2.7 billion in market capitalization over the past 90 days, pushing the total value of tokenized assets to roughly $38 billion as of mid-August, according to RWA.xyz data. The growth was driven primarily by JPMorgan's JLTXX government money market fund and Ondo Finance's USDY tokenized note. JLTXX, launched in May 2026, saw its valuation grow from a $100 million seed investment to between $694 million and $809 million, while USDY, backed by Treasuries and bank deposits, reached about $2.1 billion. Stablecoin issuers like Circle and Tether have become significant buyers, using such products for on-chain reserve management, with features enabling instant minting and redemption via digital currencies. The top four tokenized products, including BlackRock's BUIDL and USYC, account for over $8.6 billion in value, with JLTXX operating under existing US securities frameworks.

Ondo Finance is facing a succession crisis after founder Nathan Allman died unexpectedly in May 2026 at age 32. His mother, Kathleen Allman, filed a Delaware lawsuit in August 2026 to remove President Ian De Bode, who assumed the CEO role, alleging he unlawfully seized control. The board called her involvement a transitional arrangement while searching for a permanent successor. The case highlights crypto-specific succession challenges: transferring private keys, coordinating multisig wallet holders, and preventing governance attacks. Legal experts note traditional wills are insufficient without technical access and signer coordination. Ondo, operating in tokenized real-world assets, tests Delaware courts' limited precedent on digital asset custody and on-chain vs. off-chain authority.

CeDeFi platform Grvt has partnered with Ondo Finance to build a $100 million position in Ondo's USDY token over the next year, integrating the yield-bearing asset into its Grvt Earn product. The move lets Grvt hold USDY on its balance sheet, with returns feeding into the platform's existing base rate, sparing users from managing the token themselves. USDY, backed by U.S. Treasurys and bank deposits, is the third-largest tokenized product with about $2.14 billion in assets and over 15,600 holders. At a current APY of about 3.5%, a fully deployed position would yield roughly $3.5 million annually, adding to Grvt Earn's existing sources like Aave lending. The partnership follows a broader trend of firms entering onchain fixed-income markets, following products like BlackRock's BUIDL. Grvt, a hybrid DEX on ZKsync, raised $19 million in Series A funding in September and recently launched a token.

The tokenized real-world asset (RWA) market has reached $38.14 billion in distributed value as of August 10, 2026, up nearly 1.7% from the previous month, according to RWA.xyz. Ondo Finance leads with about $3.43 billion in platform assets, holding roughly 8% of the market and dominating tokenized equities with a 58-70% share. Circle follows with nearly $3 billion in its USYC tokenized Treasury product, while Franklin Templeton's BENJI fund has seen over $211 million in peer-to-peer transfers. The figures exclude stablecoins, which add about $296 billion more. Tokenized stocks have crossed $1 billion, a notable milestone given their regulatory complexity. The competitive landscape pits crypto-native firms like Ondo and Circle against traditional finance players such as Franklin Templeton and Paxos, highlighting the growing influence of on-chain asset distribution.