- Ondo Finance has requested the SEC to delay Nasdaq’s proposal for buying and selling tokenized securities.
- A delay is requested till the Depository Belief Firm (DTC) supplies particulars of the settlement.
- The Ondo Finance SEC letter argues that DTC’s lack of transparency creates unfair competitors.
Ondo Finance is asking the U.S. Securities and Alternate Fee (SEC) to delay approval of Nasdaq’s proposal to commerce tokenized securities. In his open letter, Ondo argues that plans mustn’t proceed till depository belief corporations (DTCs) publicly disclose key particulars about how tokenized funds will work.
The DeFi firm, a frontrunner in tokenized real-world property (RWA), argues that approving Nasdaq’s plan with out this transparency will preclude honest competitors. The Ondo Finance SEC letter emphasizes that whereas tokenization can modernize finance, it should be constructed on open requirements and equal entry to info.
Why Ondo claims the Nasdaq plan is lacking key knowledge
Nasdaq filed a proposal (SR-NASDAQ-2025-072) in early September outlining rule modifications that may permit tokenized variations of shares and ETFs to be traded alongside conventional shares. Nevertheless, Ondo famous that Nasdaq’s software depends on a “preliminary understanding” of DTC’s tokenized fee system, which remains to be in growth and particulars haven’t been made public.
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Mr. Ondo argues that this lack of factual proof prevents the SEC, market individuals, and buyers from correctly evaluating the proposal. With out understanding the DTC’s particular guidelines, insurance policies, and procedures for processing tokenized funds, together with fallback measures if normal processes fail, the SEC can’t decide whether or not a plan complies with the Securities Alternate Act of 1934.
Uneven enjoying subject: info asymmetry
The central allegation within the Ondo Finance SEC letter is that Nasdaq seems to have privileged entry to nonpublic info from DTC relating to the settlement plan. This info asymmetry creates an unfair benefit for Nasdaq and probably different massive incumbents over smaller, digitally native corporations seeking to compete within the tokenization area.
Ondo warns that this lack of transparency imposes an undue burden on new entrants, stifles innovation and limits market variety. As a self-regulatory group (SRO), Nasdaq has an obligation to make sure that its guidelines promote, slightly than hinder, equal entry.
Name for open requirements and regulatory motion
Ondo Finance, which operates the Tokenized U.S. Authorities Securities (OUSG) and Tokenized Fairness (Ondo World Markets) platforms, believes the way forward for tokenization ought to be constructed collaboratively and primarily based on open requirements. Public disclosure of the DTC funds framework is important for all market individuals to arrange for integration, guarantee compliance, and promote honest competitors.
Mr. Ondo formally requested the SEC to postpone a choice on Nasdaq’s proposal. The corporate is looking on the European Fee to provoke proceedings to pressure DTC to publish particulars of its tokenized fee system. Ondo says it could rethink its place and help Nasdaq’s proposal as soon as this vital info is supplied to all market individuals.
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