Ondo Finance has formally requested that the U.S. Securities and Exchange Commission (SEC) either delay or reject Nasdaq’s recent proposal to trade tokenized securities.
Core Objection: Lack of Transparency
The central issue raised by Ondo is the lack of public transparency surrounding the post-trade settlement system for the proposed tokenized stocks, which involves the Depository Trust Company (DTC).
- Ondo argues that without clear details on how the DTC will manage blockchain-based settlement, regulators and investors cannot properly evaluate the proposal’s safety and fairness.
- If approved, these tokenized stocks would settle using the DTC’s new blockchain system alongside traditional stocks.
Concerns Over Competitive Imbalances
Ondo’s objection highlights broader market implications, specifically around competitive fairness and investor protections in the nascent tokenization market.
- Peter Curley, Head of Global Regulatory Affairs at Ondo, expressed concerns about competitive imbalances arising from potential restricted access to the DTC’s tokenization framework.
- Curley stressed that financial advancements like tokenization must proceed through “open collaboration and transparent standards.”
Nasdaq submitted the proposal on September 8th, and the SEC’s decision was initially expected before year’s end. Ondo’s intervention is now under review by the SEC and could potentially impact the approval timeline. Nasdaq has not yet issued a public response to these concerns.
October 2025, Cryptoniteuae
