Ondo Finance (ONDO) "Nasdaq stock and ETF tokenization plan, settlement structure unclear"

JH Kim

Summary

Ondo Finance expressed concerns about Nasdaq's stock and ETF tokenization plan.
It specifically pointed out that the settlement procedures and the token-actual stock connection method are unclear.
The SEC said that sufficient information collection and review of the structure are needed before approval.

The real-world asset (RWA) tokenization platform Ondo Finance (ONDO) expressed concerns on the 17th (local time) via X (formerly Twitter) about Nasdaq's 'stock and ETF tokenization' plan.

In a comment submitted to the U.S. Securities and Exchange Commission (SEC), Ondo Finance pointed out, "Tokenization is the next step in financial innovation, but Nasdaq's plan has an unclear settlement process," and said, "It is not clearly presented how the tokens are connected to the actual stocks."

It emphasized that "the SEC needs to collect and review sufficient information about the structure before approval."

Earlier, Nasdaq submitted a 'stock and ETF tokenization' plan to the SEC, stating it intends to settle tokenized securities through existing financial infrastructure (DTC settlement network).

ONDO