Ondo Finance raises concerns about Nasdaq's tokenization plan

Real-world asset (RWA) tokenization platform Ondo Finance (ONDO) has raised concerns about Nasdaq's plan to tokenize stocks and ETFs. In a comment letter to the U.S. Securities and Exchange Commission (SEC), Ondo Finance acknowledged that tokenization is the next step in financial innovation but argued that the settlement process in Nasdaq's proposal is unclear. The firm highlighted that it is not clear how the tokens would be linked to the underlying stocks. Therefore, Ondo Finance urged the SEC to gather sufficient information and fully understand the plan before deciding whether to approve it. Nasdaq had previously submitted its proposal to the SEC, stating it would settle the tokenized securities through the existing financial system via the Depository Trust Company (DTC) settlement network.