In an official filing with the U.S. Securities and Exchange Commission (SEC), 21Shares, one of the top issuers of cryptocurrency exchange-traded products (ETPs), announced plans to introduce an ETF that directly backs ONDO, the native token of Ondo Finance.
Instead of depending on derivatives or synthetic exposure, the proposed ETF would directly hold $ONDO tokens. This contrasts with earlier attempts to package digital assets for U.S. investors. The CME CF Ondo Finance-Dollar Reference Rate is a specialized index that compiles ONDO trading data from top cryptocurrency exchanges.
The proposed ETF’s features are:
- Direct Token Custody: Coinbase Custody will securely hold all of the trust’s tokens, ensuring asset separation and institutional-grade safety.
- Passive Fund Structure: Investors can obtain exposure without the hassles of leverage or active management by using the ETF, which passively replicates the dollar value of ONDO.
- Regulated Market Access: Retail and institutional investors will have access to the token. This is through their current brokerage accounts. This will be possible after the ETF’s shares are listed on a major U.S. national exchange.
ONDO Combines Traditional Assets With Tokenization
By bringing assets such as Treasury bills, U.S. government bonds, and money market instruments on-chain, the company has quickly become a pioneer in the RWA tokenization movement. Investors can readily access tokenized versions of these conventional assets through its infrastructure, frequently more effectively and at a lower cost than legacy offerings.
The foundation of this ecosystem is the ONDO token, which drives governance and encourages involvement in the expanding range of actively traded, yield-bearing DeFi assets.
21Shares is establishing ONDO, as well as tokenized assets in general, as legitimate, investable vehicles alongside equities, bonds, and tangible commodities by introducing a specialized ETF.
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