Ondo Finance urges SEC to delay Nasdaq’s tokenization plan over transparency gaps
Ondo Finance is urging the US Securities and Exchange Commission (SEC) to delay a proposed Rule change from Nasdaq That will allow for the trading of tokenized securities.
In a Letter In a filing Wednesday, the tokenization company raised concerns over what it sees as a lack of transparency and a potential threat to fair market access.
The issue centers on NASDAQ’s plan to change its rules to support tokenized asset trading. While Nasdaq said it expects the Depository Trust Company (DTC), the central clearinghouse for US securities, to handle post-trade settlement for these tokens, the details of how this will work remain unclear.
This depends on Nasdaq’s “preliminary interpretation” that it understands the deposit trust company (DTC) to be contemplated for the settlement of securities in token form, there is no direct evidence of which is on record, “Ondo wrote.” This deprives the commission of information necessary to determine whether the proposed rule change is consistent with the requirements of the Securities Exchange Act of 1934 (Exchange Act).
Ondo, which offers tokenized products such as short-term US Treasuries and exposure to US stocks through blockchain-based tokens, has argued that unequal access to information favors large incumbents.
Smaller or newer companies are left without the data they need to plan or respond to market changes.
Ondo said it could support Nasdaq’s plan if DTC made its process public. Until then, it’s asking the SEC to open a formal review that could lead to dissent.
