Ondo Finance calls for greater transparency ahead of Nasdaq tokenization proposal

Ondo Finance has sent a letter to the Securities Exchange Commission (SEC) asking for more details of the settlement mechanism before approving Nasdaq's proposal to support tokenized stocks and ETFs, which would process "tokenized securities" through the Depository Trust Corporation (DTC) clearing system.
Ondo, which manages a variety of tokenised assets including money market funds and US government securities and is linked to the World Liberty Financial project backed by the Trump family, said tokenisation was opening a new phase of financial innovation and should be advanced through open collaboration and transparency standards and called on the SEC to review further before making a final decision.
Nasdaq filed a rule change application with the SEC last month in support of tokenization of stocks, saying it would promote innovation in market structure without sacrificing investor protection. SEC Commissioner Hester Peirce also pointed out that asset tokenization has become a regulatory priority.
However, nonprofit Better Markets has warned that tokenization could weaken investor protections, and its director of securities policy, Benjamin Schiffrin, has said the SEC's priority should be to protect investors rather than cater to the crypto industry.