Bankless · Thursday, July 2, 2026
Ian DeBode, CEO of Ondo Finance, believes that while onshore and offshore markets for derivatives and tokenized assets will coexist, U.S. regulations must avoid being overly restrictive to remain competitive. He noted that current U.S. frameworks do not accommodate tokenized stock wrappers, a concept already established offshore. DeBode argues that U.S. regulators should examine successful offshore models to ensure domestic innovation isn't stifled by incumbent interests.
“I mean, yeah, there's going to be different regulations the moment you come into the U.S. on any type of derivative contract, particularly if you offer it to retail as well. The caps that are on retail leverage in the U.S. are much lower than what is available offshore. Now, you could argue that's both good and bad, right? Try to stay away from those value judgment. But I do think as a result, you'll continue to see an offshore market and you'll over time see an onshore market. And they will be very different. The benefit of the onshore market is that it's fully regulated and that comes with different types of protections. Offshore, it is more not regulated. And as a result, leverage can be higher and the like. Some people like that, some people don't. So both markets will coexist regularly.”
“But in the U.S., the wrapper as a concept does not exist, right? And there's even debate around allowing what they call third-party custodial issuance, which is very similar to what we do with the wrappers. I think the U.S. at times needs to make sure it spends enough time looking offshore and what is already available offshore and what is regulated offshore to better understand how far can they push their own frameworks that they do not become not competitive.”