Ondo Finance calls for increased transparency before the advancement of Nasdaq's tokenization proposal

Jinse Finance reported that Ondo Finance has sent a letter to the U.S. Securities and Exchange Commission (SEC), requesting more disclosure of settlement mechanism details before approving Nasdaq's proposal to support tokenized stocks and ETFs. The proposal plans to process the settlement of "tokenized securities" through the Depository Trust Company (DTC) clearing system. Ondo stated that tokenization is ushering in a new phase of financial innovation and should be advanced through open collaboration and transparent standards, calling on the SEC to further review before making a final decision. Ondo currently manages various tokenized assets, including money market funds and U.S. government securities, and is associated with the Trump family-backed World Liberty Financial project. Last month, Nasdaq submitted a rule change application to the SEC to support stock tokenization, claiming that this move could promote market structure innovation without sacrificing investor protection. SEC Commissioner Hester Peirce also pointed out that asset tokenization has become a regulatory focus. However, the nonprofit organization Better Markets warned that tokenization could weaken investor protection. Its Director of Securities Policy, Benjamin Schiffrin, stated that the SEC's primary task should be to protect investors, rather than cater to the demands of the crypto industry.