21Shares Presses Toward Controlled Tokenized Assets with First-Ever ONDO ETF Filing

Swiss possession manager 21Shares has actually made a considerable move in the crypto area by filing for the first-ever ONDO ETF, a spot Exchange Traded Fund backed by the native token of Ondo Finance. This effort, if approved by the U.S. Securities and Exchange Commission (SEC), will mark a turning point as the very first U.S. listed ETF connected to a real-world asset focused cryptocurrency.

Tracking ONDO’s Value Through Cold Stored Tokens

The proposed ONDO ETF will passively track the CME CF Ondo Finance-Dollar Recommendation Rate by holding real ONDO tokens in cold storage, a departure from using derivatives. Coinbase Custody will be responsible for the secure storage of these tokens, guaranteeing managed separation of investor properties. This ingenious structure intends to transparently duplicate ONDO’s dollar worth, with the criteria aggregating executed ONDO trades from significant trading platforms.

Ondo Financing’s Growing Institutional Presence

The declare the ONDO ETF follows Ondo Finance’s acquisition of Sanctuary Pro, a regulated U.S. broker-dealer, suggesting a strategic push for stronger integration into the U.S. market. Ondo Finance has actually likewise partnered with Pantera Capital in a $250 million effort to invest in tokenized U.S. Treasuries and other yield-bearing possessions, showcasing its commitment to bringing blockchain-based possessions to regulated platforms. Ondo Financing has actually already tokenized over $500 million in real-world possessions, including U.S. Treasuries, allowing both institutional and retail investors direct on-chain access to these instruments. This ETF filing offers yet another avenue for financiers to engage with blockchain-native possessions through familiar capital market mechanisms.

ONDO’s Significance in DeFi World

Liberty Financial’s build-up of ONDO tokens for its multi-asset decentralized financing treasury highlights the increasing institutional adoption of ONDO within certified monetary techniques. Regardless of not being signed up as a security, ONDO’s presence in controlled structures is gaining prominence, with Bloomberg ETF expert James Seyffart acknowledging the significance of 21Shares’ filing in anchoring ONDO within regulated financial investment products. According to Sam Boolman, ChainIntel’s lead expert, “The filing of the ONDO ETF by 21Shares represents a turning point in the convergence of standard financing with decentralized assets. This move not only showcases the growing institutional interest in tokenized real-world assets but also sets a precedent for future ETFs backed by real-world asset-focused cryptocurrencies in regulated markets.” For more informative articles on cryptocurrency and blockchain innovation, visit ChainIntel.org.