Ondo Finance filed three comment letters with the US Securities and Exchange Commission and the Commodity Futures Trading Commission on Aug. 24, urging regulators to permit perpetual futures contracts on individual US-listed stocks under existing rules. The letters were made public on Sept. 2. The tokenization firm argues that cash-settled perpetual contracts on stocks already meet the legal definition of a 'security futures product' established by Congress in 2000, stating that 'nothing in the statutory definition of a security futures product requires a fixed expiration date.' Ondo's Panama-based affiliate, Ondo Global Panama Inc., already operates the product offshore through Ondo Perps, which recorded $8 billion in cumulative trading volume by Aug. 14, weeks after launching on July 7.
Ondo Argues Perpetuals Fit Existing Security Futures Definition
In the three comment letters signed Aug. 24, Ondo Finance addressed product definitions, portfolio margining, and data reporting requirements. The letters responded to a joint SEC-CFTC request for comment on how to define swaps and security-based swaps. Ondo stated that regulators should allow firms to submit product-specific perpetual filings to staff rather than creating new rulemaking frameworks.
The firm explained that a perpetual contract has no set expiration date but settles continuously through periodic funding payments. Ondo compared these funding payments to the final settlement mechanism of dated futures contracts, arguing the structure satisfies existing statutory requirements for security futures products.
Ondo Perps Logged $8 Billion Volume Since July Launch
Ondo Global Panama Inc. operates Ondo Perps exclusively for traders based outside the United States. The stablecoin-settled platform allows non-US traders to take perpetual positions on US-listed stocks including Apple, Nvidia, and Tesla with up to 20 times leverage. The platform also offers perpetual contracts on commodities including gold and crude oil, operating around the clock.
Ondo Perps permits traders to post tokenized stocks and other assets as margin instead of cash or stablecoins. The platform is designed to let one pool of collateral back multiple positions simultaneously. By Aug. 14, the platform had processed $8 billion in cumulative trading volume.
Ondo Acquired Oasis Pro Broker-Dealer and Built Tokenized Asset Business
Ondo Finance acquired broker-dealer Oasis Pro, which holds SEC registrations as a broker-dealer, alternative trading system, and transfer agent. The firm has built its own blockchain infrastructure for tokenized assets.
Ondo Finance built its business on tokenized US Treasuries and ranks among the largest managers of tokenized real-world assets. The firm has also deployed tokenized US Treasuries on the XRP Ledger as part of its expansion into decentralized finance infrastructure.
FAQ
What did Ondo Finance request from US regulators on Aug. 24?
Ondo Finance filed three comment letters with the SEC and CFTC on Aug. 24, made public on Sept. 2, requesting that regulators permit perpetual futures contracts on individual US-listed stocks to trade domestically under existing security futures product rules established by Congress in 2000.
How does Ondo Perps operate and what volume has it achieved?
Ondo Perps is operated by Ondo Global Panama Inc. exclusively for non-US traders, offering stablecoin-settled perpetual contracts on US stocks and commodities with up to 20 times leverage. The platform recorded $8 billion in cumulative trading volume by Aug. 14, following its July 7 launch.
What other businesses does Ondo Finance operate?
Ondo Finance acquired broker-dealer Oasis Pro, which holds SEC registrations as a broker-dealer, alternative trading system, and transfer agent. The firm built its business on tokenized US Treasuries and ranks among the largest managers of tokenized real-world assets, having also deployed tokenized Treasuries on the XRP Ledger.
