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Ondo Finance Calls for Transparency on Nasdaq’s Tokenization Plan

Ondo Finance Calls for Transparency on Nasdaq’s Tokenization Plan

Ondo Finance has urged the SEC to postpone Nasdaq’s tokenized securities rule change, citing insufficient clarity on DTC’s post-trade settlement process and potential market fairness issues.

ONDO

Fact Check
The statement is directly and explicitly confirmed by multiple sources. Source 1 (The Block) and Source 10 (CoinGecko) both state that Ondo Finance is urging for more transparency regarding Nasdaq's tokenization proposal. The evidence is strongly corroborated and is not contradicted by any of the other sources provided.
    Reference: 1
Summary

Ondo Finance has requested that the U.S. Securities and Exchange Commission delay Nasdaq’s proposed rule change permitting tokenized securities trading. In a formal letter, the firm argued that Nasdaq’s reliance on vague assumptions about the Depository Trust Company’s (DTC) settlement procedures deprives regulators of essential information needed to ensure compliance with the Securities Exchange Act of 1934. Ondo warned that unequal access to data benefits large institutions and disadvantages smaller firms. It said it could support the proposal if DTC publicly discloses its process and urged the SEC to initiate a formal review that may lead to disapproval.

Terms & Concepts
  • Tokenized Securities: Traditional financial instruments represented as digital tokens on a blockchain, allowing fractional ownership and faster settlement.
  • Depository Trust Company (DTC): A central securities depository in the U.S. that provides clearing and settlement services for financial markets.
  • Securities Exchange Act of 1934: A U.S. law regulating secondary trading of securities to ensure transparency and prevent market manipulation.