On September 16 local time, the Depository Trust & Clearing Corporation (DTCC) and Ondo Finance announced that Ondo subsidiary Oasis Pro Markets had become a member of Fund/SERV. Ondo is a technology company that turns financial assets into tokens on a blockchain. Oasis Pro Markets, the entity that joined the network, is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and an alternative trading system (ATS) operator; it acts as a distributor of tokenized investment products. Fund/SERV is established financial-market infrastructure that electronically processes and settles transactions between fund companies and distributors. The companies described this as the first participation by a tokenization platform in Fund/SERV.
Instead of building a separate connection for every fund, Oasis Pro Markets can use one standardized connection to conduct transaction-related business with fund companies, wealth-management platforms, and service providers. The connection supports the exchange of account-level information, trade confirmations, reconciliation between parties' books, distribution payments, and information needed for tax and regulatory reporting. According to DTCC, Fund/SERV processes more than 85% of U.S. mutual-fund transaction activity. Ondo said participation in the network lays the groundwork for connecting tokenized funds to existing fund-distribution channels.
The joint announcement did not identify a particular Ondo product that had begun trading through Fund/SERV or give a date for a first trade. What has taken place is a broker-dealer's admission to a processing network, which is distinct from the launch of sales of any individual tokenized fund or regulatory approval of a product.