Today in crypto, Ondo Finance is urging the US SEC to delay or reject Nasdaq’s tokenized securities proposal. Meanwhile, Japan’s top banks are reportedly planning a joint yen-based stablecoin, and more than five new crypto ETFs were filed this week despite the ongoing US government shutdown.
Ondo Finance to SEC: Hold off on Nasdaq’s tokenized securities plan
Ondo Finance urged the US Securities and Exchange Commission (SEC) to delay or reject Nasdaq’s proposal to trade tokenized securities, saying it lacks transparency and could give established market players an unfair edge.
In a Wednesday letter to the regulator, Ondo — a blockchain company that issues tokenized versions of traditional assets — said regulators and investors can’t fairly evaluate Nasdaq’s proposal without public details on how the Depository Trust Company (DTC) will handle blockchain settlements. DTC serves as the main depository for US securities and facilitates their post-trade settlement.
While acknowledging support of Nasdaq’s move toward tokenization, Ondo warned that “Nasdaq’s reference to non-public information implies differential access that deprives other firms of a fair opportunity to comment.”
The company also noted that Nasdaq’s rule cannot take effect until DTC finalizes its system, saying there’s no harm in delaying approval until more features are released. It called on the SEC to prioritize “open collaboration and transparent standards” before making a final decision.
Ondo’s letter responds to Nasdaq’s Sept. 8 filing with the SEC, in which the world’s second-largest stock exchange sought to amend its rules to allow trading in tokenized securities.
Tokenized shares are digital versions of traditional stocks recorded on a blockchain.
If approved, the proposal would let tokenized shares trade alongside traditional ones, with settlements processed through the DTC’s forthcoming system for tokenized securities.
Nasdaq’s proposal was published in the Federal Register on Sept. 22, starting the SEC’s 45-day review period, which runs until early November or late December if extended.
Japanese mega banks to jointly issue yen-pegged stablecoin: Report
Three of Japan’s largest banks reportedly plan to jointly issue a yen-pegged stablecoin, contributing to the region’s growing adoption of crypto technology within its financial infrastructure.
Nikkei reported on Friday that Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat.
The banks, which collectively serve more than 300,000 corporate clients, aim to standardize the token to make it interoperable for payments within and between companies. The consortium expects to roll out the stablecoin by the end of the year.
Mitsubishi Corp. will be the first entity to implement the stablecoin for internal settlements. With over 240 subsidiaries globally, the company aims to streamline international transfers on dividends, acquisitions and customer transactions, saving on fees and administrative burdens.
If successful, the project could establish Japan’s first bank-backed stablecoin network under a unified framework
“ETFtober” gets bigger, with over five new crypto ETFs filed this week
There has been a flurry of activity within crypto exchange-traded funds, with at least five new product applications filed with the US Securities and Exchange Commission this week despite the ongoing government shutdown.
The most recent development came from VanEck, which filed an S-1 form with the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, which will track the performance of stETH, Lido’s liquid staking token.
As a result of the protocol-based liquid staking activities underlying stETH, “the trust expects to accrue certain staking rewards through its ownership of stETH,” it stated.
21Shares filed for a leveraged crypto ETF with 2x exposure to the Hyperliquid native token, HYPE, on Thursday. The leverage applies only to the single-day performance of the token, instead of extended periods.
