Ondo Finance is urging the US Securities and Exchange Commission (SEC) to delay a proposed rule change by Nasdaq that would allow trading in tokenized securities.
In a letter submitted Wednesday, the tokenization firm raised concerns about 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 says 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 that would work remain vague.
It depends on Nasdaq’s “preliminary sense” of the process that it understands that the Depository Trust Company (DTC) is considering liquidating securities in token form, for which there is no direct evidence,” Ondo wrote. “This deprives the Commission of the necessary information to determine whether the proposed rule change complies with the requirements of the Securities Exchange Act of 19
Ondo, which offers tokenized products such as short-term US Treasuries and exposure to US stocks via blockchain-based tokens, argued that unequal access to information favors large incumbents.
Smaller or newer businesses are left without the data they need to plan or respond to market changes.
Ondo says it could support Nasdaq’s plan if DTC makes its process public. Until then, it is asking the SEC to open a formal review that could lead to rejection.
