Ethereum ETF Approval Means Tokenization of Assets Now ‘Completely Safe’: Securitize CEO

Following the approval of a spot Ethereum ETF on Thursday, the cryptocurrency linked to the tokenization of real assets (RWA) is hitting previous highs. The CEO of a BlackRock-backed RWA company said: decryption Approval based on the premise of asset tokenization on Ethereum is optimistic.

Ondo Finance’s governance token has surged 16% in the last 24 hours to $1.10. At the time of this writing, it led the top 100 coins in the cryptocurrency market by market capitalization in terms of daily gains. CoinGecko.

The project specializes in providing institutional-level financial products and services, such as tokens offering US dollar returns or exposure to US Treasury bonds. 2022 Pantera Capital and Peter Thiel’s Founders Fund ~ led $20 million Series A funding round for the project.

Securitize CEO Carlos Domingo apparently confirms the regulatory status of Ethereum as a commodity, and the approval of multiple spot ETFs has enormous consequences for companies focused on building digital representations of assets traded on-chain and via related infrastructure. He said he would bring it. decryption.

“The most important thing here is not that you can trade an Ethereum ETF,” he said of Thursday’s approval. “At least from an institutional perspective, Ethereum is (currently) completely safe to use because there is no risk that the gas tokens (ETH in this case) are actually securities.”

March Temperature said $95 million worth of funds backed by U.S. Treasury-backed tokens (OUSG) will be moved into BlackRock’s tokenized BUIDL fund. Shares of BlackRock’s BUIDL fund, established through Securitize, are denominated as Ethereum-based tokens pegged at a price of $1, with fund subscribers receiving returns in the form of more tokens.

Ondo’s switch to BlackRock’s BUIDL fund was about efficiency, Domingo said. The CEO explained that while previously backing the OUSG token with BlackRock’s iShares Short Treasury Bond ETF, product management was relatively clunky.

“They didn’t have good control of the underlying assets in terms of quick issuance, quick redemption and chain visibility,” Domingo said. “One of the use cases for BUIDL is that it becomes a base layer that people can build products on top of.”

Ondo did not immediately respond to a request for comment. decryption.

BlackRock CEO Larry Fink described tokenization as “The next generation for the market” It was believed that from 2022, cryptocurrency technology could provide “reduced fees” and “instant payments” to financial market participants.

Describing Ondo as “highly innovative,” Domingo said Ondo’s use of BUIDL breaks down five distinct steps between broker-dealers and custodians that protect assets in redemptions of Ondo products. Previously, it took “two or three days to get the money,” he said.

In light of the approval of the spot Ethereum ETF, Domingo said he expects more established financial companies to move into the tokenization space as recent regulatory concerns are resolved.

“In my opinion, (this) has more to do with tokenization than Bitcoin ETFs,” he said. “As I mentioned, (Ethereum) is not a commodity, so it is very clear that using the public Ethereum blockchain is safe from a regulatory perspective.”

Editor: Andrew Hayward