Ondo Finance Recent Updates: Regulation, Tokenized Markets & More

Ondo Finance recent updates include SEC clearance, EU approval for tokenized stocks, SWEEP launch with State Street, and expansion across major blockchains.Ondo Finance’s recent updates show the company moving deeper into regulated financial markets while expanding tokenized assets across the US, Europe, and multiple blockchains. 

The most important development is that the US Securities and Exchange Commission has closed its two-year investigation into Ondo Finance without filing charges. This confirms that, based on this inquiry, the ONDO token will not be treated as a security. At the same time, Ondo has secured European approval to offer tokenized stocks and ETFs to retail investors, launched new institutional products, and expanded distribution through major partners.

What Does the SEC’s Decision Mean for Ondo Finance?

The SEC’s decision to close its investigation is one of the most closely watched regulatory outcomes in the real-world asset sector. The review began in 2024, during a period when crypto firms were facing aggressive enforcement and unclear regulatory expectations.

The SEC examined two main issues:

• Whether Ondo’s tokenized US Treasuries and equities complied with federal securities laws
• Whether the ONDO token itself should be classified as a security

After two years, the agency ended the inquiry without enforcement action.

This outcome matters for several reasons. First, it removes legal uncertainty around Ondo’s core business model. Second, it signals that properly structured tokenization products can operate within existing investor protection rules. Third, it sets an informal reference point for other firms working on similar products.

Ondo said it cooperated fully with regulators and designed its products to mirror traditional market safeguards. These include regulated custody, transparent disclosures, and eligibility controls. In practice, this means the blockchain acts as a settlement and record-keeping layer, while the underlying assets remain governed by existing financial rules.

Ondo Announces $25M Investment in YLDS

Ondo Short-Term US Treasuries Fund, known as OUSG, is the company’s flagship product. It provides tokenized exposure to short-term US government debt with near-instant settlement into stablecoins.

On Nov. 24, Ondo announced a $25 million strategic investment in YLDS, a yield-bearing stablecoin issued by Figure Certificate Company. The investment strengthens the backing of OUSG and diversifies its yield sources.

OUSG has grown to more than $780 million in total value locked and offers several features designed for institutional use:

• Instant, 24/7 subscriptions and redemptions
• Daily interest accrual
• Low fees
• Multi-chain access across Ethereum, Solana, Ripple, and Polygon

The fund’s reserves now include tokenized products from major asset managers such as BlackRock, Fidelity, Franklin Templeton, WisdomTree, Wellington Management, and Figure.

What Is SWEEP and Why Does It Matter?

On Dec. 10, Ondo Finance joined State Street Investment Management and Galaxy Asset Management to launch SWEEP, a tokenized liquidity fund designed for institutional cash management.

SWEEP stands for the State Street Galaxy Onchain Liquidity Sweep Fund. It applies the concept of traditional sweep accounts to a blockchain environment.

The fund will:

• Target a launch on Solana in early 2026
• Accept subscriptions and redemptions in PYUSD
• Be available only to Qualified Purchasers
• Include an anchor investment from Ondo through OUSG

Ondo has committed about $200 million as seed capital.

Sweep funds allow institutions to park idle cash in short-term instruments while maintaining reliable liquidity. SWEEP preserves this structure while using blockchain rails for settlement and transparency.

Galaxy Asset Management will help operate and distribute the fund, while State Street brings traditional cash management expertise.

OUSG plans to become a lead anchor investor in SWEEP. This adds another high-quality reserve component to its portfolio.

Adding SWEEP improves liquidity depth and reduces redemption pressure during volatile periods. 

EU Approval for Ondo Finance

Ondo Finance has received full regulatory approval to offer tokenized stocks and ETFs to retail investors across the European Union and the wider European Economic Area.

The approval comes from Liechtenstein’s Financial Market Authority. Its passporting rules extend across all 30 EEA countries, including the EU, Iceland, Norway, and Liechtenstein.

This allows Ondo Global Markets to:

• Offer tokenized US stocks and ETFs across Europe
• Operate under a single regulatory framework
• Apply consistent investor protections
• Reach more than 500 million retail investors

Before this approval, Ondo’s products were largely limited to crypto-native users. Now, they can reach Europe’s broader investing public.

Ondo is already the largest provider of tokenized stocks and ETFs, with over $315 million in total value locked and more than $1 billion in trading volume since launch.

Oasis Pro Acquisition

In early October, Ondo completed its acquisition of Oasis Pro, a US broker-dealer, Alternative Trading System, and Transfer Agent.

This gives Ondo:

• An SEC-registered broker-dealer
• An ATS for secondary trading
• A Transfer Agent license

These approvals allow Ondo to issue and trade tokenized securities inside the US regulatory framework. The platform can now support secondary markets for equities, corporate debt, structured products, asset-backed securities, and closed-end funds.

With approvals in both the US and Europe, Ondo controls the full lifecycle of tokenized financial products across major jurisdictions.

Why Did Ondo Partner With Chainlink?

On Oct. 30, Ondo Finance announced a strategic partnership with Chainlink. Chainlink will serve as the official oracle provider for Ondo’s tokenized stocks and ETFs.

The partnership also promotes Chainlink’s Cross-Chain Interoperability Protocol as a standard for institutional cross-chain transactions.

Chainlink provides:

• Custom price feeds for tokenized equities
• Accurate dividend and corporate action data
• Continuous onchain valuation updates

This ensures that tokenized stocks reflect real-time market conditions. For institutional products, pricing accuracy is not optional. It is a requirement.

Chainlink has also joined the Ondo Global Market Alliance, supporting broader integration into DeFi and institutional systems.

Ondo Expanding Through DeFi Platforms

Ondo’s tokenized assets are increasingly accessible through decentralized platforms.

On Oct. 28, PancakeSwap launched support for more than 100 tokenized assets from Ondo on BNB Chain. These include tokenized stocks, bonds, and ETFs.

To mark the launch, PancakeSwap waived trading fees for 30 days on Ondo assets traded through PancakeSwapX.

The assets include tokenized versions of major stocks such as Apple, Amazon, and Tesla.

Separately, Bitget Wallet expanded its collaboration with Ondo to support Ondo Global Markets on BNB Chain. This brings tokenized US stocks and ETFs to Bitget Wallet’s 80 million users.

Users can trade with as little as $20 and access markets 24/5 without brokerage accounts. In November 2025, Bitget Wallet recorded its strongest performance since launching tokenized stock trading, with spot volume up 152% month over month.

Conclusion

Ondo Finance’s recent updates show a company operating inside regulated frameworks while expanding onchain access to traditional financial markets. The SEC’s decision to close its investigation removes a major legal overhang. European approval opens access to hundreds of millions of retail investors. Institutional products like OUSG and SWEEP strengthen onchain cash and treasury management.

Across the US, Europe, and major blockchains, Ondo is building infrastructure that connects traditional assets with blockchain settlement. The focus is on compliance, liquidity, and operational reliability rather than speculation.

Resources

1. Ondo Finance on X : Posts (November 2025 - December 2025)

2. Announcement - Ondo Secures EU Regulatory Approval for Tokenized Stocks and ETFs: 

3. Press release - Ondo and Chainlink Announce Landmark Strategic Partnership to Jointly Bring Financial Institutions Onchain: 

4. PancakeSwap’s official blog post: PancakeSwap Brings Ondo Finance’s 100+ Tokenized Real-World assets (RWAs) Onchain to BNB Chain

5. Announcement from Ondo Finance: State Street Investment Management, Galaxy Digital, and Ondo Finance Announce Plans to Launch Private Tokenized Money Market Fund

6. Report by CoinDesk: State Street and Galaxy to Launch Tokenized Liquidity Fund on Solana in 2026

7. Announcement - Ondo Finance Completes Acquisition of Oasis Pro to Accelerate U.S. Tokenized Securities Innovation: 

8. Announcement from Ondo Finance: State Street Investment Management, Galaxy Digital, and Ondo Finance Announce Plans to Launch Private Tokenized Money Market Fund

9. Ondo Finance statement: Case Closed: Clearing the Way for Tokenization

10. Report by Fox Business: Atkins predicts US financial system may shift to tokenization within a 'couple of years’

11. Press release by Bitget Wallet: Bitget Wallet Joins Ondo to Bring Over 100 Tokenized Equities to BNB Chain

12. Announcement by Ondo Finance: Ondo Invests $25M into Figure’s YLDS to Power OUSG