Ondo Asks SEC to Delay Nasdaq Tokenization Over DTC Opacity
Ondo Finance has urged the SEC to delay Nasdaq tokenization, criticizing the lack of public details on how the DTC blockchain settlement will operate. In an Oct. 18 letter, the firm warned that opaque trading rules could favor large institutions and stifle competition among tokenized securities issuers.
Nasdaq’s proposal seeks SEC approval to list tokenized securities alongside traditional stocks on its exchange. Industry players like Robinhood’s Layer-2 platform for European tokenized stocks, eToro and Kraken have also launched similar services, heightening market competition.
Ondo said it would back the rule change only if the DTC publicly discloses its settlement processes and open standards. Otherwise, it plans to seek formal review to disapprove the measure. Traders should watch the SEC review and DTC’s settlement disclosure, as delays in Nasdaq tokenization could impact liquidity and market access.
Neutral
Ondo’s call for delaying Nasdaq tokenization may slow the rollout of tokenized securities, temporarily reducing market activity in this niche. In the short term, uncertainty around DTC blockchain settlement and SEC review could weigh on trading volumes for new tokenized assets. However, the broader cryptocurrency market is unlikely to see significant price shifts, as major tokens and platforms remain unaffected by this procedural delay. Over the long term, greater transparency requirements could enhance trust and boost adoption once resolved, supporting healthier market conditions.