Ondo Finance Urges SEC to Delay Nasdaq's Tokenization Plan Over Transparency Gaps

Ondo Finance has formally requested that the U.S. Securities and Exchange Commission (SEC) postpone approval of a proposed rule change by Nasdaq that would permit the trading of tokenized securities. Ondo's primary concern is the lack of transparency surrounding how the Depository Trust Company (DTC), the central clearinghouse, will manage post-trade settlement for these tokens. Ondo noted that Nasdaq's plan relies on a "preliminary sense" of the DTC's contemplated process, which lacks direct evidence, preventing the SEC from properly assessing compliance with the Securities Exchange Act of 1934. The tokenization firm argues that this opacity unfairly favors large incumbents by withholding necessary data from smaller firms, hindering their ability to plan for market changes. Ondo stated it would support Nasdaq's plan if the DTC publicly discloses its settlement process; otherwise, it seeks a formal SEC review that could lead to the plan's disapproval.

(Source：CoinDesk)