Ondo Finance Urges SEC to Scrutinize Nasdaq’s Tokenization Proposal

Ondo Finance, a startup specializing in asset tokenization, has called on the U.S. Securities and Exchange Commission to demand greater transparency from Nasdaq before approving its plan to settle tokenized stocks and ETFs through the Depository Trust Company clearinghouse. The proposal could reshape market infrastructure and investor protections.

Tokenization represents a paradigm shift in financial markets, merging traditional securities with blockchain efficiency. Ondo's intervention highlights the need for standardized frameworks as institutional players like Nasdaq explore distributed ledger technology. The SEC's decision may set precedents for how regulated exchanges integrate crypto-native innovations.

The debate centers on whether existing clearing mechanisms can adequately support tokenized assets without creating systemic risks. Market participants await regulatory clarity as the lines between conventional finance and digital assets continue to blur.