You think tokenized stocks are a crypto story.
The fight that decides whether they actually work is happening inside an SEC rulebook built nearly 50 years ago. Most of crypto is not reading it.
Ondo just filed a comment letter on the SEC's proposed overhaul. Here is what every tokenized stock holder is really up against.
Every stock has an official record of who owns it. A transfer agent keeps that record, the scorekeeper most investors never meet.
Today the clean connections to that record run through DTC, the central depository your broker plugs into. It was built for business hours and big institutions.
A token in your wallet trading around the clock still has to connect back to that record. If that connection is weak, your token inherits the weakness.
Ondo is asking the SEC for three things:
1. Comparable access for token holders: reliable connections to the issuer's transfer agent on par with what the DTC system already enjoys. Investors pick the route that suits them.
2. No repeat paperwork on routine transfers: a token transfer should not force agents to recollect verified personal data or redo unchanged legal work without a clear reason.
3. An open market: no rule requiring a transfer agent to control an entire public blockchain, and a workable path for smaller providers. Success is judged by lower costs, better service and more choice.
Nearly 50 years.
That is how long this plumbing has gone without a rebuild. Get it wrong and tokenized stocks run through a few closed pipes owned by the same incumbents.
Get it right and the official ownership record finally speaks the language of public blockchains.
Most people will discover tokenized stocks after these rules are already written.
The fight that decides whether they actually work is happening inside an SEC rulebook built nearly 50 years ago. Most of crypto is not reading it.
Ondo just filed a comment letter on the SEC's proposed overhaul. Here is what every tokenized stock holder is really up against.
Every stock has an official record of who owns it. A transfer agent keeps that record, the scorekeeper most investors never meet.
Today the clean connections to that record run through DTC, the central depository your broker plugs into. It was built for business hours and big institutions.
A token in your wallet trading around the clock still has to connect back to that record. If that connection is weak, your token inherits the weakness.
Ondo is asking the SEC for three things:
1. Comparable access for token holders: reliable connections to the issuer's transfer agent on par with what the DTC system already enjoys. Investors pick the route that suits them.
2. No repeat paperwork on routine transfers: a token transfer should not force agents to recollect verified personal data or redo unchanged legal work without a clear reason.
3. An open market: no rule requiring a transfer agent to control an entire public blockchain, and a workable path for smaller providers. Success is judged by lower costs, better service and more choice.
Nearly 50 years.
That is how long this plumbing has gone without a rebuild. Get it wrong and tokenized stocks run through a few closed pipes owned by the same incumbents.
Get it right and the official ownership record finally speaks the language of public blockchains.
Most people will discover tokenized stocks after these rules are already written.