Ondo Finance Urges SEC to Delay or Reject Nasdaq's Tokenized Stock Trading Proposal

Oct. 18 — Ondo Finance has requested the U.S. Securities and Exchange Commission (SEC) to delay or reject Nasdaq's proposal on trading tokenized securities, citing insufficient disclosure of post-trade settlement mechanisms. According to the letter, Nasdaq relies on non-public information to describe the Depository Trust Company's (DTC) blockchain-based settlement process, creating an information imbalance that undermines fair review rights for other market participants. Ondo emphasized that a lack of public details on DTC's systems for reconciliation, recordkeeping, and risk management would hinder regulators and investors from fully assessing the proposal. While supporting Nasdaq's push for tokenization, Ondo called for greater transparency and open collaboration. Nasdaq submitted the proposal on Sept. 8, initiating a 45-day SEC review period on Sept. 22, which could be extended as late as December.