SEC Chair Says U.S. Markets May Move Fully On-Chain

• Ondo will launch tokenized U.S. stocks and ETFs on Solana in early 2026 with 24/7 trading and seconds-fast settlement.

• The rollout expands Ondo beyond Ethereum and BNB Chain, extending tokenized securities to Solana’s high-throughput network.

• Ondo Bridge enables 1:1 cross-chain transfers of 100+ tokenized assets using LayerZero, boosting liquidity and mobility.

SEC Chair Paul Atkins said U.S. financial markets could operate on blockchain networks within two years. Atkins explained that tokenization could modernize ownership records, reduce settlement risk and reshape market infrastructure through on-chain processes.

Tokenization Explained Under Existing Securities Law

Atkins described tokenization as placing traditional securities onto blockchains using smart contracts. According to him, these tokenized assets remain securities under U.S. law. Therefore, they stay subject to existing SEC rules and oversight.

However, blockchain records could improve transparency around ownership. Currently, companies often lack real-time visibility into shareholder locations. Tokenized records could change that structure.

As a result, issuers could track ownership directly on-chain. This shift, notably, keeps legal protections intact while changing how records move.

Settlement Speed and Risk Reduction Goals

Building on transparency, Atkins highlighted settlement improvements as a key benefit. U.S. markets now operate on a T+1 settlement cycle. Tokenization could, however, support same-day or near-instant settlement.

He noted that delivery-versus-payment mechanisms could occur directly on-chain. That process may reduce counterparty risk. Still, Atkins acknowledged limits for certain instruments.

Netting and market structure requirements remain under review. Even so, he said the gap between trade and settlement introduces risk today. On-chain settlement could narrow that gap significantly.

SEC Position and Market Adoption Timeline

Atkins also addressed the SEC’s changing stance on blockchain technology. He said the agency previously resisted rapid innovation. That position, however, has changed. The SEC now supports market modernization efforts.

According to Atkins, major banks and brokers already explore tokenization. He added that adoption could accelerate sooner than expected. In his words, the shift may occur within a few years. This approach, he said, aligns with keeping U.S. markets competitive while applying existing regulatory standards.