In a landmark regulatory development for real‐world asset tokenization, Ondo Global Markets has secured approval from the Liechtenstein‐based FMA to offer tokenized shares of U.S. companies and exchange-traded funds (ETFs) to retail and institutional investors across more than 30 European Economic Area (EEA) countries.
The approval grants Ondo the ability to passport its tokenized stock and ETF offerings throughout the EEA, including all 27 EU member states plus Iceland, Norway and Liechtenstein itself opening up potential access to over 500 million investors.
What This Approval Enables
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Ondo’s tokenization platform will allow investors in Europe to buy and trade blockchain-based versions of U.S. stocks and ETFs, with on-chain settlement and underlying asset backing.
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The approval leverages Liechtenstein’s regulatory framework and passporting rights across the EEA, enabling the product roll‐out under supervision consistent with the upcoming Markets in Crypto-Assets (MiCA) regulation.
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The tokenized offerings may provide 24/7 access, quicker settlement and lower minimums compared with traditional brokerage models, bringing traditional equities and ETF exposure into the digital asset realm.
Why It Matters
Bridging Traditional Finance & Blockchain
This move signals a shift: tokenized versions of U.S. stocks and ETFs being offered in a regulated European context represent an evolution of “real-world assets” (RWAs) on chain. For thousands of European investors, it means access to U.S. markets through crypto-native infrastructure.
Regulatory Pathway Strengthened
By obtaining FMA approval under Liechtenstein’s framework, Ondo sets a precedent for tokenized securities within Europe. This may accelerate further issuance of tokenized equities and ETFs across regulated jurisdictions.
Increased Market Access & Inclusion
For millions of European investors, the offering may reduce traditional barriers such as high fees, geographic restrictions and settlement delays. The on-chain model could provide faster access to diverse U.S. equity exposure.
Key Considerations and Risks
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Underlying asset backing and transparency: Tokenized securities must be backed by the actual underlying stocks or ETFs. Investors should verify custody arrangements, audit transparency and regulatory protections.
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Regulatory status in multiple jurisdictions: While the FMA approval covers 30 EEA countries via passporting, local regulators in each country may impose additional restrictions or oversight.
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Technology and execution risk: While tokenization offers advantages, platform reliability, liquidity and investor protection frameworks remain critical.
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Market timing and adoption: The tokenized stock offering may face adoption challenges, and market liquidity may initially be lower than traditional equities markets.
What to Watch Next
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Launch timeline & asset list: Which U.S. stocks and ETFs will be tokenized first? What custody partners and blockchains will be used?
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Retail investor uptake: How many European retail users adopt tokenized stocks versus traditional brokerage methods?
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Liquidity and price behaviour: Will tokenized stocks track the performance of the underlying securities closely?
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Regulatory developments: With MiCA’s full implementation on the horizon, how will tokenized securities regulation evolve in Europe?
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Competition effects: Will other issuers or tokenization platforms rush to replicate Ondo’s model?
FAQs
Q1: What exactly did Ondo Global Markets receive approval for?
Ondo received regulatory approval from the Liechtenstein FMA to offer tokenized U.S. stocks and exchange‐traded funds (ETFs) to investors across 30 European jurisdictions via passporting across the EEA.
Q2: Which countries does the approval cover?
The approval covers the 27 EU member states plus Iceland, Norway and Liechtenstein approximately 30 countries in total, offering access to more than 500 million investors.
Q3: What does “tokenized stock” mean?
A tokenized stock is a digital asset on a blockchain that represents ownership in or claim on the underlying traditional security (stock or ETF). It is backed by the real asset and enables blockchain-based trading and settlement.
Q4: Will tokenized stocks be identical to regular stocks?
They should track the underlying asset’s performance, but there may be differences in trading hours, liquidity, regulatory protections and custody arrangements. Investors should understand these distinctions.
Q5: How could this impact European investors?
European investors may gain easier access to U.S. stocks and ETFs with potentially lower costs, broader hours, and on-chain transparency. It may also encourage wider adoption of tokenized real-world assets in Europe.
Q6: Are there risks involved?
Yes. Risks include: platform or custody failure, regulatory changes, lower liquidity, tracking differences, and understanding the legal structure of tokenized assets. Due diligence remains important.access