In today’s crypto news, Ondo Finance is calling on the US SEC to postpone or reject Nasdaq’s tokenized securities proposal. Meanwhile, major banks in Japan are reportedly planning a collaborative yen-based stablecoin, and over five new crypto ETFs were submitted this week despite the ongoing US government shutdown.
Ondo Finance to SEC: Postpone Nasdaq’s tokenized securities initiative
Ondo Finance has urged the US Securities and Exchange Commission (SEC) to delay or reject Nasdaq’s proposal for trading tokenized securities, citing a lack of transparency and potential unfair advantages for established market players.
In a letter sent to the regulator on Wednesday, Ondo — a blockchain company offering tokenized versions of traditional assets — explained that both regulators and investors cannot adequately assess Nasdaq’s proposal without public information regarding how the Depository Trust Company (DTC) will manage blockchain settlements. DTC is the primary depository for US securities and oversees their post-trade settlement process.
While Ondo expressed support for Nasdaq’s shift towards tokenization, it cautioned that “Nasdaq’s reference to non-public information suggests unequal access that denies other firms a fair opportunity to provide feedback.”
Moreover, the company highlighted that Nasdaq’s proposal cannot take effect until DTC finalizes its system, arguing that there is no downside to delaying approval until more features are available. Ondo called for the SEC to emphasize “open collaboration and transparent standards” prior to reaching a final decision.
Ondo’s letter is in response to Nasdaq’s Sept. 8 filing with the SEC, where the world’s second-largest stock exchange sought to amend its regulations to permit trading in tokenized securities.
Tokenized shares are digital forms of traditional stocks recorded on a blockchain.
If approved, the proposal would enable tokenized shares to trade alongside conventional ones, with settlements handled through the DTC’s upcoming system for tokenized securities.
Nasdaq’s proposal was published in the Federal Register on Sept. 22, initiating the SEC’s 45-day review period, which will conclude in early November or late December if extended.
Japan’s major banks plan to jointly launch yen-pegged stablecoin: Report
Three of Japan’s largest banks are reportedly set to collaborate on a yen-pegged stablecoin, enhancing the region’s growing integration of crypto technology within its financial systems.
Nikkei reported on Friday that Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank intend to modernize corporate settlements and lower transaction costs through a yen-based stablecoin initiative powered by MUFG’s stablecoin issuance platform Progmat.
The banks, serving over 300,000 corporate clients together, aim to standardize the token for interoperability in payments within and between companies. The consortium anticipates launching the stablecoin by the year’s end.
Mitsubishi Corp. will be the first organization to apply the stablecoin for internal settlements. With over 240 subsidiaries worldwide, the company intends to simplify international transfers regarding dividends, acquisitions, and customer transactions, ultimately reducing fees and administrative workloads.
If successful, this venture could lead to Japan’s first bank-supported stablecoin network operating under a unified framework.
“ETFtober” expands with over five new crypto ETFs filed this week
The crypto exchange-traded fund space has seen significant activity, with at least five new product applications submitted to the US Securities and Exchange Commission this week despite the continuing government shutdown.
The latest development came from VanEck, which submitted an S-1 form to the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, designed to track the performance of stETH, Lido’s liquid staking token.
Due to 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 is only applicable to the single-day performance of the token, not over extended periods.
