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Ondo Finance Urges SEC to Delay Nasdaq's Tokenization Plan Over Transparency Gaps
The proposed rule change relies on Nasdaq's vague understanding of how the Depository Trust Company (DTC) would handle post-trade settlement for these tokens.
Oct 18, 2025, 3:57 p.m.
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What to know:
- Ondo Finance has urged the SEC to delay a proposed Nasdaq rule change that would allow for the trading of tokenized securities.
- The proposed rule change relies on Nasdaq's vague understanding of how the Depository Trust Company (DTC) would handle post-trade settlement for tokenized assets, which Ondo argues deprives the SEC of necessary information.
- Ondo Finance suggested that making DTC's process public would alleviate concerns.
Ondo Finance is urging the U.S. Securities and Exchange Commission (SEC) to delay a proposed rule change from Nasdaq that would allow for the trading of tokenized securities.
In a letter submitted Wednesday, the tokenization firm raised concerns over what it sees as a lack of transparency and a potential threat to fair market access.
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The issue centers on Nasdaq’s plan to amend its rules to support tokenized asset trading. While Nasdaq says it expects the Depository Trust Company (DTC), the central clearinghouse for U.S. securities, to handle post-trade settlement for these tokens, details of how that would work remain vague.
It relies on Nasdaq's "preliminary sense" of the process that it understands the Depository Trust Company (DTC) to be contemplating for settling securities in token form, no direct evidence of which is on the record,” Ondo wrote. “This deprives the Commission of information needed to determine whether the proposed rule change is consistent with the requirements of the Securities Exchange Act of 1934 (Exchange Act).”
Ondo, which offers tokenized products like short-term U.S. Treasuries and exposure to U.S. stocks via blockchain-based tokens, argued that unequal access to information favors large incumbents.
Smaller or newer firms are left without the data they need to plan or respond to market changes.
Ondo says it could support Nasdaq’s plan if DTC makes its process public. Until then, it’s asking the SEC to open a formal review that could lead to disapproval.
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