Ondo Finance: Concerns Over Nasdaq's Plan to Tokenize Stocks and ETFs

ONDO Finance, a real-world asset (RWA) tokenization platform, has raised concerns about Nasdaq's plan to tokenize stocks and ETFs. In a letter to the U.S. Securities and Exchange Commission (SEC), ONDO emphasized, "Tokenization is the next step in financial innovation, but Nasdaq's plan lacks clarity on settlement. It is unclear how tokens are linked to stocks. Therefore, the SEC should gather and understand sufficient information before deciding whether to approve the plan." In its submission to the SEC, Nasdaq previously stated that it would settle tokenized securities through the existing financial system (the Direct-To-Market Settlement Network).