Ondo Finance Urges SEC to Delay Nasdaq's Tokenized Securities Proposal

According to PANews, Ondo Finance has called on the U.S. Securities and Exchange Commission (SEC) to postpone or reject Nasdaq's proposal to trade tokenized securities, citing concerns over transparency and potential unfair advantages for existing market participants. Ondo, a blockchain company that issues tokenized versions of traditional assets, expressed in a letter to regulators that without public details on how the Depository Trust Company (DTC) will handle blockchain settlements, both regulators and investors cannot fairly assess Nasdaq's proposal. The DTC, a primary depository for U.S. securities, is responsible for facilitating post-trade settlements. Ondo highlighted that Nasdaq's regulations cannot be implemented until the DTC finalizes its system, suggesting that delaying approval until more functionalities are released is reasonable. The company urged the SEC to prioritize "open collaboration and transparency standards" before making a final decision.