Ondo Global Markets Secures Regulatory Clearance
Ondo Global Markets, a tokenization platform based in the United States, has successfully secured regulatory clearance from the Liechtenstein Financial Market Authority (FMA) to introduce tokenized stocks and exchange-traded funds (ETFs) to investors across Europe. This significant development, announced on Tuesday, opens up investment opportunities in US markets to an estimated 500 million individuals in 30 European nations, allowing them to engage in trading through a regulated and on-chain platform.
Implications of the Approval
The approval from Liechtenstein is particularly noteworthy as it grants Ondo the capability to operate not only within the 27 member states of the EU but also extends to additional EEA countries such as Iceland, Norway, and of course, Liechtenstein itself. By leveraging Liechtenstein’s established passporting regime, Ondo aims to ensure compliance with robust investor protection standards prevalent in the European financial framework.
Recent Collaborations and Future Considerations
This regulatory achievement follows a recent collaboration between Ondo and BX Digital, the digital asset division of the Boerse Stuttgart Group, which aims to facilitate tokenized stock trading in Switzerland starting November 3. The firm did not disclose the specifics of the regulatory framework that allowed it to gain approval in Europe; however, its actions are timely given Liechtenstein’s implementation of the EU’s Markets in Crypto-Assets (MiCA) legislation through the EEA MiCA Implementation Act that came into effect in February.
Looking ahead, it is crucial for crypto asset service providers (CASPs) to be aware that once the transitional regime expires on December 31, 2025, they will be required to obtain MiCA authorization from the Liechtenstein FMA in order to continue operating legally. As tensions rise within the EU about supervisory authority under MiCA, there are reports that EU officials are considering assigning the European Securities and Markets Authority as the overseeing regulator for CASPs throughout the region.
Cointelegraph reached out to both Ondo and the FMA for insight regarding this regulatory approval but did not receive any comments prior to publication.
