Ondo Finance Urges SEC to Delay Nasdaq Tokenization Plan Over Transparency Concerns

Ondo Finance has published an open letter to the U.S. Securities and Exchange Commission (SEC) asking it to delay approval of Nasdaq’s plan to trade tokenized securities until more details are revealed.

The team behind the decentralized finance protocol, which has $1.7 billion in total value locked (TVL), said Nasdaq’s proposal depends on the Depository Trust Company (DTC) figuring out a new system for tokenized settlement – information that has not yet been made public.

If approved, Nasdaq’s proposal (filed on Sept. 8) would mark the first time tokenized securities are listed on a major U.S. exchange. However, Ondo warned that moving forward without transparency could give larger financial institutions an unfair edge or make it harder for newer firms to compete.

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