ONDO jumped about 16% on reports that the U.S. Securities and Exchange Commission was preparing a framework that could allow tokenized versions of stocks to trade on cryptocurrency rails, potentially giving one of the most perceptible names in the real asset sector fresh regulatory wind. ONDO trade value was close to $0.390, up 15.5% in 24 hours, with a daily volume of approximately $228 million and a market capitalization of close to $1.9 billion.

The move came after Bloomberg reportthat the SEC could provide an “innovation exception” for tokenized stocks as soon as this week. The framework would reportedly create a path for digital versions of securities to trade outside classic exchange systems and on decentralized crypto platforms, including tokens that may not have the consent or backing of the public companies whose shares they track.

Why does ONDO profit most from news?

For cryptocurrency markets, the report fell squarely on one of the most powerful narratives of the year: tokenized public equities. Kobeissi’s letter described the potential release via

The market reaction has focused on projects already oriented around on-chain securities. ONDO saw gains among the major RWA-related tokens, while investors also pointed to Hyperliquid as a potential beneficiary due to its role in on-chain derivatives. One account, The DeFi Investor, called the report “great news” for both HYPE and ONDO, arguing that it “legitimizes Ondo as the largest issuer of tokenized shares,” while Hyperliquid will be “one of the biggest beneficiaries as the largest DEX for RWA criminals.”

Ondo’s own data points gave investors a concrete reason to link the SEC report to the token. Ondo Global Markets’ total value recently surpassed $1 billion, with value locked less than eight months after its launch in September 2025. The platform holds over 70% of the tokenized equity issuer market and has processed over $18 billion in cumulative trading volume. It currently offers over 260 tokenized US stocks and ETFs on the Solana, Ethereum and BNB networks.

Related reading: Crypto funds extend six-week streak with $858 million in inflows as CLARITY Act advances

Katie Wheeler, managing director of global partnerships at Ondo Finance, said in a recent interview that the platform’s growth could accelerate further. “I wouldn’t be surprised if we hit $5 billion by the end of the year. I know it seems a little lucrative, but we have a lot of interest and we’re really building quite a lot of potential.”

Wheeler’s broader argument is that tokenized stocks remain in their early stages relative to the size of public markets. “We’re literally just scratching the surface. It’s a very big industry. So even if we hit 1%, I think it would be huge,” she said.

Tokenized stocks are just getting started.

Following Ondo’s tokenized shares surpassing $1 billion in TVL, Ondo’s @KatieAWheeler distance @TheStreet her year-end forecast:

“I wouldn’t be surprised if we exceed $5 billion by the end of the year. We’re seeing a lot of interest and we’re building quite a… pic.twitter.com/sFIoiXqi8G

— Ondo Finance (@OndoFinance) May 18, 2026

Still, the SEC’s reported approach raises a fundamental regulatory question: whether stock-linked tokens can scale without undermining shareholder protections. Bloomberg reported that tokens may not provide classic rights such as voting power or dividends, while source material indicates that platforms may lose eligibility if exchange-traded products do not provide rights such as voting or dividends.

At the time of publication, ONDO was trading at $0.3871.

Featured image created with DALL.E, chart from TradingView.com