Financial technology firm Ondo Finance has formally urged the U.S. Securities and Exchange Commission to halt approval of Nasdaq’s proposed tokenized securities platform, citing significant transparency deficiencies in the Depository Trust Company’s operations. The firm contends that current gaps in DTC transparency protocols could undermine market fairness and hinder genuine innovation in digital securities markets.
In detailed submissions to the regulatory body, Ondo Finance emphasized that comprehensive public disclosure of all operational mechanisms must precede any regulatory approval. The company’s position highlights concerns that insufficient transparency could create uneven playing fields and potentially compromise investor protection standards.
Market observers note that the debate centers on balancing technological advancement with regulatory safeguards. Nasdaq’s proposal represents one of several recent initiatives by traditional financial institutions to integrate blockchain technology into mainstream securities operations. However, critics maintain that without complete operational transparency, such developments risk repeating historical market structure problems in new technological contexts.
The SEC now faces mounting pressure to thoroughly evaluate these transparency concerns before proceeding with Nasdaq’s application. This development occurs amid broader regulatory discussions about appropriate frameworks for digital asset securities and their integration with established market infrastructure.
