SEC Innovation Exemption boosts Ondo Finance tokenized stock trading

The U.S. Securities and Exchange Commission (SEC) has issued an ‘Innovation Exemption’ to facilitate the regulated trading of certain tokenized U.S. stocks on the blockchain. This temporary and conditional relief allows qualifying Tokenized Securities Venues (TSVs) to trade tokenized National Market System stocks using permissioned automated market makers and liquidity pools for a period of five years.

Following the announcement, the price of Ondo Finance’s native token, ONDO, saw significant gains, rising over 12% in a 24-hour period. The regulatory shift is viewed as a step toward bringing U.S. capital markets on-chain. Ondo Finance, which has a tokenized market cap exceeding $3.50 billion, maintains a significant presence in the sector, with stocks accounting for more than $900 million of that value.