Ondo has obtained compliance in Liechtenstein and can launch tokenized US stocks and ETFs in 30 European countries.

The tokenization product protocol Ondo Finance has recently announced that its Ondo Global Markets has obtained approval from the European Financial Market Authority (FMA), allowing it to launch tokenized U.S. stocks and ETFs in the EU and the entire European Economic Area (EEA). This also means that over 500 million investors across 30 countries, including 27 EU member states, as well as Iceland, Norway, and Liechtenstein, will be able to directly access the U.S. stock market on-chain in the future.

What country is Liechtenstein, and how is it the world's largest exporter of dentures?

The Principality of Liechtenstein is located in central Europe, situated inland between Switzerland and Austria, with a land area of only about 160 square kilometers, approximately the size of 0.6 Taipei City, and a national population of less than 40,000.

Although Liechtenstein has a small population and relies heavily on imports for its resources, it is a member of the United Nations and several international organizations, with political stability and a highly developed economy. Its GDP per capita reaches $98,432, ranking sixth in the world.

The country adopts a constitutional monarchy, with German as the official language, but it does not border Germany. With low tax rates, a friendly corporate system, and a strict tradition of bank privacy, the number of business registrations in the country is almost double that of its residents. In addition, Liechtenstein is also the world's largest producer and exporter of dentures, with an annual production exceeding 60 million pieces, accounting for over 20% of global sales. The overall Human Development Index also ranks among the top countries in the world, maintaining a long-standing image of wealth, stability, and a very high quality of life.

After cooperating with the Deutsche Börse Group, approval from Liechtenstein has been obtained.

Before announcing the approval from Liechtenstein, Ondo collaborated with BX Digital, a subsidiary of the Stuttgart Stock Exchange Group, to launch tokenization stock trading services in Switzerland on 11/3.

In other words, Ondo first launched tokenized stock trading in Switzerland, and most recently, through approval in Liechtenstein, expanded the market to the entire EEA.

Why Ondo chose Liechtenstein

The reason this approval is particularly noteworthy is that Liechtenstein is not a member of the European Union, but it is part of the EEA and has fully adopted the “Crypto Assets Market Regulation” (MiCA).

Liechtenstein officially implemented the EEA version of the MiCA enforcement law in February this year (EWR-MiCA-DG). According to regulations, the EU and EEA will provide operators with a period of time to adjust, supplement, and comply with the regulations, and the transition period will end on December 31 of this year. After that, all crypto asset service providers (CASP) must obtain MiCA authorization to operate legally within the EEA.

Ondo stated that they obtained the qualification for compliant sales in the EEA through Liechtenstein's “passporting” system. However, neither Ondo nor the Liechtenstein FMA responded to media inquiries regarding the approval details.

The reshuffling of regulatory powers is underway, and the approval timing is particularly sensitive.

This approval comes at a sensitive time in the EU's internal discussions on regulatory authority. Currently, the EU is considering whether the European Securities and Markets Authority (ESMA) should directly act as the supervisory authority for all crypto asset service providers, and there is still no consensus among governments on how much regulatory power should be retained.

At this stage where the regulatory framework may be adjusted, Ondo obtaining approval has also become an important action of external interest.

French regulators warn of loopholes in the MiCA passporting system

The “passport system” that Ondo is utilizing this time has also sparked controversy. The so-called passport system means:

“MiCA allows a company to operate in all 27 EU countries as long as it obtains a license in one member state, which is known as the passporting system.”

However, the French financial regulatory authority had previously warned that some operators might deliberately choose to register in countries with looser regulations to engage in regulatory arbitrage, threatening to block passporting. Therefore, in the future, the model of wanting to enter the entire EU market through compliance in a single country may face more scrutiny and restrictions, and how regulatory authorities in various countries coordinate with each other will also be a key point in subsequent European regulatory reforms.

This article discusses Ondo obtaining compliance in Liechtenstein, allowing the launch of tokenized US stocks and ETFs in 30 European countries, first appearing in Chain News ABMedia.