The US House Committee on Financial Services has opened a formal hearing on the regulatory treatment of tokenized assets, focusing on their legal classification and the effect blockchain-based market infrastructure could have on existing financial systems. The debate in Washington is active, but the business models under review are already operating in live markets.
In an open letter to Congress, Ondo Finance said many of the features lawmakers are examining are already functioning on current platforms. The company stated that its infrastructure allows investors to trade more than 250 tokenized stocks and ETFs around the clock through blockchain-based systems, with near-instant settlement. That stands apart from traditional stock exchanges, where trading is limited to set market hours.
Ondo says tokenized securities infrastructure is already in production
Ondo described its framework as compliant with ownership and custody rules through the use of regulated special purpose vehicles, which it said ensure tokens reflect the legal and beneficial interests in the underlying assets. The company also said smart contracts are used to automate anti-money laundering checks and identity verification, cutting compliance friction while enabling immediate access for users globally.
On market position, Ondo said it accounts for roughly 60% of tokenized equity volume. It also cited tens of thousands of active users and millions of blockchain-based transactions as evidence that adoption is already substantial. In Ondo’s view, those figures show tokenized asset infrastructure has moved beyond pilot programs and into full operation.
Franklin Templeton adds five tokenized ETF products
Franklin Templeton is also expanding its digital product lineup. According to the source material, the asset manager worked with Ondo to create tokenized versions of five ETFs spanning equities, bonds, and gold. Franklin Templeton has been exploring blockchain applications since 2021, and these products are aimed at investors looking for continuous market access and digital-native delivery.
Ondo said investors can access these tokenized funds through DeFi platforms, while the tokens remain backed by real securities. The report also noted Franklin Templeton’s BENJI fund, described as the largest blockchain-native treasury product managed by a traditional investment firm, as part of the company’s broader tokenization push.
Regulatory review is moving alongside market adoption
Policy work and market rollout are moving at the same time. Some financial institutions are still testing tokenized systems in pilot form, but Ondo argues it already operates a full-scale compliant trading environment. The firm said blockchain-based settlement, automated compliance, and continuous market availability are functioning in live production settings.
Its message to US policymakers is clear: the core technology for tokenized securities trading is already available, and regulatory recognition would determine how quickly that model can connect US markets with global digital-asset participation.