Ondo Finance Urges SEC to Delay Nasdaq's Tokenization Plan Over Transparency Gaps

Core Viewpoint - Ondo Finance is advocating for the U.S. SEC to postpone a proposed Nasdaq rule change that would permit trading of tokenized securities due to concerns over transparency and fair market access [1][4]. Group 1: Nasdaq's Proposed Rule Change - Nasdaq plans to amend its rules to facilitate tokenized asset trading, with expectations that the Depository Trust Company (DTC) will manage post-trade settlement for these tokens, although specific details remain unclear [2][3]. - Ondo Finance highlights that the lack of direct evidence regarding DTC's process for settling tokenized securities undermines the SEC's ability to assess the rule change's compliance with the Securities Exchange Act of 1934 [3]. Group 2: Concerns Raised by Ondo Finance - Ondo argues that the current situation creates an information imbalance, favoring larger, established firms over smaller or newer companies that lack necessary data to adapt to market changes [3][4]. - The company expresses willingness to support Nasdaq's initiative if DTC publicly discloses its settlement process, but is currently requesting a formal SEC review that could result in disapproval of the proposed rule [4].