Ondo Finance to SEC: Hold off on Nasdaq’s tokenized securities plan

Ondo Finance sent a letter to the US Securities and Exchange Commission (SEC) requesting they delay or reject Nasdaq's proposal to trade tokenized securities. Ondo argues that the plan lacks transparency because it relies on non-public details about how the Depository Trust Company (DTC) will handle blockchain settlements, which could give established market players an unfair advantage.

Ondo noted that Nasdaq's rule cannot take effect until the DTC finalizes its system, suggesting there is no harm in delaying approval until more features are released. The company called for the SEC to prioritize "open collaboration and transparent standards" before making a decision. Nasdaq's proposal, filed in September, seeks to amend rules to allow tokenized shares to trade alongside traditional ones, with settlements processed via the DTC's forthcoming system.

The debate occurs as other platforms, including Robinhood, eToro, and Kraken, are also launching or planning to launch tokenized versions of US equities, signaling a growing trend in the tokenization of real-world assets (RWA).

(Source：Cointelegraph)