The approval of spot Ethereum ETFs by the US Securities and Alternate Fee (SEC) carries important implications for corporations engaged in tokenizing property that commerce on-chain. Carlos Domingo, CEO of Securitize, affirmed Ethereum’s regulatory standing as a commodity and said that the approval is bullish for the asset tokenization premise on the Ethereum blockchain.

Domingo highlighted the significance of institutional security in utilizing Ethereum, because the approval eliminates issues about Ethereum’s native token, ETH, being categorized as a safety. He emphasised that Ethereum is now thought-about protected for institutional use, additional bolstering its place as a dependable platform for asset tokenization.

That is helpful to protocols specializing in tokenizing real-world property (RWAs), comparable to Ondo Finance. The venture focuses on offering institutional-grade monetary services, together with tokens providing USD yield or publicity to US Treasuries. In 2022, Ondo Finance raised $20 million in a Sequence A funding spherical led by Pantera Capital and Peter Thiel’s Founders Fund. Following the approval of spot Ethereum ETFs, ONDO skilled a big surge in its governance token, ONDO, gaining 32.8% over the previous week. It’s presently buying and selling at $1.23.

BlackRock CEO Larry Fink has lengthy regarded tokenization as the following step from ETFS, envisioning diminished charges and instantaneous settlement facilitated by blockchain expertise. BlackRock’s strategic funding spherical of $47 million in tokenization agency Securitize additional solidifies its dedication to the sector.