Ondo Finance Urges SEC to Delay Nasdaq’s Tokenized Stock Proposal Amid DTC Settlement Transparency Concerns

Tokenized securities have entered a pivotal regulatory crossroads as Ondo Finance formally addressed the SEC with a request to halt or override Nasdaq’s recent proposal. Ondo cites the exchange’s opaque description of DTC’s blockchain‑based post‑trade settlement framework, underscoring that without publicly disclosed mechanics—such as reconciliation, record‑keeping, and risk containment—investors and market participants cannot perform a comprehensive risk assessment. The firm warns that exclusive access to non‑public operational details could create an inequitable competitive environment. While endorsing Nasdaq’s ambition to broaden the tokenization landscape, Ondo insists on transparent, industry‑wide protocols. The SEC’s 45‑day review, extendable to December’s end, hinges on whether Nasdaq can furnish the necessary clarifications to safeguard market integrity.