Ondo Finance Urges SEC to Give Tokenized Stock Holders Transfer Agent Access Like DTC

Ondo Finance submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) on Tuesday, responding to the regulator's proposed overhaul of transfer agent rules. The letter advocates for direct connectivity between holders of tokenized stocks and exchange-traded funds (ETFs) and transfer agents, mirroring the access traditional brokers have via the Depository Trust Company (DTC) system. This initiative aims to modernize decades-old regulations, last significantly updated in the late 1970s, to accommodate blockchain technology in securities offerings and transfers. Ondo also seeks to streamline information requirements and legal reviews for routine transactions, preventing redundant personal information collection or duplicate legal work. Furthermore, the company urges the SEC to support public blockchains without mandating transfer agent control over the entire network and to provide feasible compliance routes for smaller service providers. This engagement is crucial for the Real World Asset (RWA) market as it pushes for regulatory clarity and infrastructure modernization, enabling more efficient and accessible tokenization of traditional securities. It highlights the ongoing effort to integrate blockchain-based securities into existing financial frameworks, potentially lowering barriers for tokenized asset adoption and fostering a more interconnected financial ecosystem.