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- Ondo receives regulatory approval to expand tokenized assets in Europe.
- Over 500 million investors gain access to US market equities.
- Ondo partners with BX Digital to boost European presence.
Ondo Global Markets has received approval from the Liechtenstein Financial Market Authority (FMA). This approval allows the platform to offer tokenized US stocks and exchange-traded funds (ETFs) across the European Economic Area (EEA). This step opens regulated on-chain investments to the potential of more than half a billion potential investors in 30 EEA countries. These investors are now permitted to invest in US equities under a single regulatory framework.
This growth enables Ondo to have a strong presence in the European market. It is an expansion of their new alliance with BX Digital, a subsidiary of the Boerse Stuttgart Group. The partnership had launched tokenized stock trading in Switzerland earlier this month. Ondo is now planning to expand in Europe.
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Leverage of Liechtenstein’s Regulatory Framework
The decision is founded on the good regulatory environment of Liechtenstein. The passporting regime in the country enables firms to conduct their activities across the EEA without having to seek individual approvals. This covers all EU member countries, as well as other countries, including Iceland, Liechtenstein, and Norway.
Another regulatory framework that helps enforce the presented regulation is the fact that Liechtenstein is a member of the Markets in Crypto Assets (MiCA) framework adopted by the EU.
By 2025, crypto asset service providers, such as Ondo, will be required to obtain MiCA authorization from the FMA. This is to ensure compliance with the investor protection standards applicable to this region. Ondo is not subject to the expansion that is to be done within the EEA, which allows it to spread tokenized assets.
Meanwhile, there is an increasingly growing debate on the extent to which regulatory authority should be vested in a single EU member state. European Securities and Markets Authority (ESMA) is also being discussed in relation to playing a bigger role in the regulation of crypto assets.
Recent approval of Ondo makes it better equipped to provide safe tokenized assets within Europe. The platform has the potential to expand in the region, as it has made efforts to ensure compliance with all emerging regulations.
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