Ondo Finance has formally petitioned the U.S. Securities and Exchange Commission to delay approval of Nasdaq’s proposed tokenized securities trading platform, citing significant transparency issues in the exchange’s settlement framework. In a detailed submission to regulators, the decentralized finance protocol highlighted that Nasdaq’s current proposal lacks crucial disclosure regarding settlement mechanisms, potentially creating an uneven playing field that could disadvantage retail investors.
The core objection centers on what Ondo Finance characterizes as ‘structural ambiguities’ in the settlement process that might inadvertently privilege institutional participants with superior market access or technical capabilities. This regulatory challenge comes at a pivotal moment for digital asset integration within traditional financial markets, as major exchanges explore blockchain-based securities offerings.
Market observers note that the outcome of this regulatory review could establish important precedents for how established financial infrastructure operators implement tokenized assets. The SEC now faces balancing innovation against market fairness considerations, with industry participants closely monitoring whether Nasdaq will be required to revise its proposal to address the settlement transparency concerns raised by Ondo Finance and potentially other market participants.
