Ondo Finance Urges SEC to Delay Nasdaq’s Tokenized Securities Plan

Blockchain firm warns of unequal access and lack of transparency in Nasdaq’s tokenization proposal.

Ondo Calls for Transparency in Nasdaq’s Blockchain Settlement Plan

Ondo Finance has asked the U.S. Securities and Exchange Commission (SEC) to postpone or reject Nasdaq’s proposal to trade tokenized securities, arguing that the plan lacks sufficient transparency and could unfairly benefit major financial institutions.

In a letter sent Wednesday, Ondo — known for issuing tokenized versions of traditional assets — said the proposal does not clearly explain how the Depository Trust Company (DTC) will manage blockchain-based settlements. The DTC, a key clearing and settlement agency for U.S. securities, will play a central role in the process.

“Nasdaq’s reference to non-public information implies differential access that deprives other firms of a fair opportunity to comment,” Ondo wrote, stressing the need for open collaboration and transparent standards before the SEC makes its decision.

The company further noted that Nasdaq’s rule cannot take effect until the DTC finalizes its tokenized system, suggesting there’s “no harm” in delaying approval until more details are released.

Nasdaq’s Push Toward Tokenized Stocks

Nasdaq filed its proposal with the SEC on September 8, aiming to amend its rules to allow trading of tokenized securities — digital representations of traditional shares recorded on blockchain networks. The SEC published the proposal in the Federal Register on September 22, initiating a 45-day review period that could extend into December.

The debate comes amid a growing race to tokenize real-world assets (RWA). Robinhood, eToro, and Kraken have already announced initiatives to offer tokenized U.S. stocks and ETFs, signaling a shift toward 24/5 blockchain-based equity trading.

If approved, tokenized shares would trade alongside traditional equities, with settlements facilitated through DTC’s upcoming distributed ledger infrastructure.

“The tokenization of securities could redefine market access,” noted analysts at Galaxy Digital, warning that the trend might eventually challenge the dominance of traditional exchanges like the NYSE by improving liquidity and efficiency on blockchain platforms.

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