Ondo Finance Acquires Oasis Pro to Offer Tokenized Stocks in US

Ondo Finance, an Ethereum decentralized finance (DeFi) platform, has made a significant move by acquiring Oasis Pro. This acquisition, announced on Friday, allows Ondo to leverage Oasis Pro's regulatory licenses, including those for a broker-dealer, alternative trading system, and transfer agent. These licenses, granted by U.S. federal regulators, will enable Ondo to offer tokenized stocks to U.S. investors, positioning itself as a competitor to fintech giants like Robinhood.

Nathan Allman, CEO of Ondo Finance, highlighted the strategic importance of this acquisition. "This acquisition will empower us to realize our vision of building a robust and accessible tokenized financial system, backed by the strongest regulatory foundations," he stated. The deal not only enhances Ondo's capabilities in the tokenized real-world assets market but also strengthens its compliance with U.S. regulations, a crucial aspect for expanding its operations domestically.

Oasis Pro, a member of the Financial Industry Regulatory Authority and Options Price Reporting Authority, has been instrumental in shaping the U.S. regulatory framework for tokenized assets as part of FINRA’s Crypto Working Group. This regulatory expertise will be invaluable for Ondo as it navigates the complexities of offering tokenized stocks in the U.S. market.

Ondo's entry into the tokenized stocks arena comes at a time when several digital asset firms are vying to meet the growing demand for blockchain-based equities. While Robinhood and Kraken have recently expanded access to tokenized U.S. stocks for E.U. investors, and platforms like Jupiter and Chainlink offer support for tokenized shares of major stocks via the xStock platform, Ondo aims to differentiate itself through the transparency and permissionless nature of its offerings.

According to a representative from Ondo, the platform's approach contrasts with Robinhood's permissioned, walled-garden model. "One simple way to think about it is Robinhood is offering permissioned [or] walled-garden tokenized stocks only available in their app for now. Ondo’s [offerings] will be permissionless," the representative explained. This distinction could attract investors seeking more open and transparent financial systems.

Ondo's latest move follows its earlier launch of the Global Markets platform, which allows non-U.S. investors to invest in tokenized stocks, bonds, and exchange-traded funds. The platform's expansion into the U.S. market, facilitated by the Oasis Pro acquisition, underscores its commitment to providing a comprehensive and compliant tokenized financial system.

The tokenized real-world assets market is currently valued at $24.79 billion, with on-chain stocks accounting for $425.9 million of this market, according to data analytics platform rwa.xyz. Experts project that the tokenized assets market could reach $13 trillion by 2030, highlighting the significant growth potential in this sector. Ondo's strategic acquisitions and partnerships, such as the recent deal with crypto venture-capital firm Pantera to fund real-world asset tokenization projects, position it well to capitalize on this emerging market.