SEC Drops Investigation, Ondo Finance (ONDO) Opens a New Chapter in Tokenized Finance

The SEC formally notified Ondo Finance in late November 2025, ending its two-year investigation into the company without filing any charges.

The investigation, which began in October 2023, primarily examines whether Ondo complies with securities laws when tokenizing U.S. Treasury products and whether its governance token, ONDO, should be classified as a security.

Ondo Finance has established itself as a leader in real-world asset tokenization, with a total lock-up value of $1 billion, demonstrating strong market demand for its RWA offerings.

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01 A historic shift in regulatory attitudes

The SEC’s investigation into Ondo Finance concludes marking a pivotal shift in the U.S. regulatory approach to digital assets, particularly real-world assets, tokenization.

The investigation began in October 2023, coinciding with a period of strict stance taken by former SEC Chairman Gary Gensler on the crypto industry. The regulatory environment for digital assets in the United States at the time was described by Ondo as “full of caution, confusion, and occasionally overly broad enforcement actions.”

However, since Paul Atkins became SEC chairman, the agency has closed several crypto-related cases involving major companies, including Coinbase, Ripple, and Kraken. Regulators are reevaluating Biden-era policies on digital assets, recognizing that innovation and investor protection are not mutually exclusive.

02 The core of the investigation and the tacit approval of regulation

The SEC’s investigation into Ondo Finance focuses on two core questions: whether the company’s tokenization of certain real-world assets complies with federal securities laws and whether its native token, ONDO, is a security.

The investigation specifically focused on the compliance of Ondo’s tokenized U.S. Treasury products. This type of product introduces low-risk assets from traditional finance to the blockchain, providing investors with a new investment tool that combines traditional financial security with blockchain efficiency.

An Ondo spokesperson confirmed that the company received an official notification at the end of November 2025 confirming that the investigation had been concluded. No charges were made throughout the process, which is rare in the crypto industry’s interactions with regulators and is seen as a positive sign by industry observers.

03 Ondo Finance’s Strategic Trajectory and Product Innovation

Ondo Finance’s trajectory clearly illustrates its strategic upgrade from a DeFi infrastructure provider to a core player in RWAs. The company was founded in 2021 to “accelerate the adoption of DeFi among mainstream investors by enabling refined trading of risk.”

The Ondo V1 phase, focusing on DeFi infrastructure, introduced “Liquidity as a Service” (LaaS) to address the unsustainable issue of yield farming. By cooperating with Fei Protocol, Frax Finance, etc., it provides compliant and balanced liquidity support for project parties.

With the DeFi trust crisis triggered by the collapse of the Terra ecosystem in 2022, Ondo shifted its strategic focus to tokenizing real-world assets. In January 2023, Ondo V2 was officially launched, launching token products collateralized by U.S. Treasury bonds and corporate bonds.

Its core product, OUSG, is a tokenized U.S. Treasury fund, and the underlying asset is BlackRock’s iShares short-term U.S. Treasury ETF. This product quickly gained market acceptance, making Ondo a significant platform in the field of U.S. Treasury tokenization.

04 Market Reaction and ONDO Token Performance

With the announcement of the SEC’s conclusion of its investigation, the market performance of the ONDO token is in the spotlight. As of December 10, 2025, investors can access the latest price and trading data for ONDO through mainstream exchanges like Gate.

Despite short-term market volatility, the elimination of regulatory uncertainty has created a more stable environment for Ondo Finance and its token to develop. Ondo’s business continues to expand during the SEC investigation, launching over 100 tokenized stocks and exchange-traded funds.

Ondo’s global expansion plans are also moving forward. In November 2025, Ondo Global Markets received regulatory approval to offer tokenized shares to European investors. Competitor Securitize also received regulatory approval to operate in the EU during the same period.

05 Industry impact and future prospects

The SEC’s conclusion of its investigation into Ondo Finance not only signifies significant for the company but also marks a turning point in the tokenized securities industry. “The resolution of the SEC investigation marks the end of one chapter and the beginning of another for Ondo,” Ondo said in an official statement.

Tokenization technology is transforming the way traditional financial assets are issued, traded, and settled. U.S. Treasury tokenization has become one of the fastest-growing areas of on-chain asset classes, and the recent launch of equity tokenization has also shown strong growth momentum.

In terms of the regulatory framework, Washington has begun to reverse or moderate some of the aggressive measures taken by the previous administration. The SEC’s Investor Advisory Committee is evaluating how tokenization is revolutionizing the issuance, trading, and settlement process of public offerings, a departure from the enforcement-first stance of recent years.

The trend of integration of tokenized securities with traditional finance

The U.S. financial infrastructure is evolving to support tokenization. Ondo has established a fully regulated business base in the U.S. tokenized securities space by acquiring Oasis Pro, obtaining broker-dealer, alternative trading system, and transfer agent licenses.

Cooperation between tokenization platforms is also being strengthened. In June 2025, Ondo announced the establishment of a global market alliance aimed at “harmonizing industry standards and promoting interoperability in tokenized securities,” with members including the Solana Foundation, Bitget Wallet, and other prominent institutions.

Most U.S. tokenization platforms currently primarily serve overseas markets, but an improved regulatory environment could change that. As regulatory clarity increases, platforms like Ondo may start offering more services to US customers.

Future Outlook

As of December 10, 2025, on the Gate exchange, the ONDO token has emerged from the haze of regulatory uncertainty. Its 52-week price range has fluctuated widely between $0.25000 and $2.14230, painting a trajectory brimming with resilience.

With tokenization officially on the SEC’s agenda, traditional assets like U.S. Treasuries and stocks are migrating to blockchain at an unprecedented rate. Ondo Finance stands at the forefront of tokenizing real-world assets, with a pipeline of over 100 tokenized stocks and ETFs, quietly reshaping the fabric of capital markets.

The future of global finance is unfolding on-chain, and the green light for regulation has just come on.