{"id":17110,"date":"2025-10-18T08:15:32","date_gmt":"2025-10-18T06:15:32","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=17110"},"modified":"2025-10-18T08:15:32","modified_gmt":"2025-10-18T06:15:32","slug":"ondo-takes-a-stand-against-nasdaqs-tokenization-initiative","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/10\/18\/ondo-takes-a-stand-against-nasdaqs-tokenization-initiative\/","title":{"rendered":"Ondo Takes a Stand Against Nasdaq’s Tokenization Initiative"},"content":{"rendered":"

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Today in cryptocurrency, Ondo Finance is requesting that the US SEC postpone or dismiss Nasdaq\u2019s tokenized securities initiative. In the meantime, major banks in Japan are allegedly preparing to collaborate on a yen-linked stablecoin, and over five fresh crypto ETFs were submitted this week despite the persistent US government shutdown.<\/p>\n

Ondo Finance to SEC: Postpone Nasdaq\u2019s tokenized securities proposal<\/h2>\n

Ondo Finance appealed to the US Securities and Exchange Commission (SEC) to postpone or deny Nasdaq\u2019s proposition<\/a> to exchange tokenized securities, arguing it lacks clarity and might provide established market players an undue advantage.<\/p>\n

In a Wednesday letter<\/a> to the authority, Ondo \u2014 a blockchain firm that issues tokenized variants of conventional assets \u2014 stated that regulators and investors cannot adequately assess Nasdaq\u2019s proposal without public insights on how the Depository Trust Company (DTC) will manage blockchain settlements. DTC<\/a> functions as the primary depository for US securities and aids in their post-trade settlement.<\/p>\n

While expressing support for Nasdaq\u2019s advancement toward tokenization, Ondo cautioned that \u201cNasdaq\u2019s reference to confidential information suggests unequal access that deprives other firms of a fair chance to respond.\u201d<\/p>\n

The enterprise also highlighted that Nasdaq\u2019s regulation cannot be implemented until DTC finalizes its system, asserting there\u2019s no detriment in delaying approval until additional features are available. It called on the SEC to focus on \u201copen collaboration and clear standards\u201d before reaching a final conclusion.<\/p>\n

Ondo’s correspondence addresses Nasdaq\u2019s Sept. 8 filing<\/a> with the SEC, wherein the world\u2019s second-largest stock exchange sought to modify its regulations to permit the trading of tokenized securities<\/a>.<\/p>\n

Tokenized shares are digital representations of conventional stocks recorded on a blockchain.<\/p>\n

If sanctioned, the initiative would allow tokenized shares to trade alongside traditional ones, with settlements executed through the DTC\u2019s upcoming system for tokenized securities.<\/p>\n

Nasdaq\u2019s proposal was published<\/a> in the Federal Register on Sept. 22, initiating the SEC\u2019s 45-day examination phase, which extends until early November or late December if prolonged.<\/p>\n

Japanese major banks to collaboratively launch yen-pegged stablecoin: Report<\/h2>\n

Three of Japan\u2019s largest banks are reportedly set to collaboratively launch<\/a> a yen-pegged stablecoin, contributing to the region\u2019s increasing adoption of crypto technology in its financial ecosystem.<\/p>\n

Nikkei reported<\/a> on Friday that Mitsubishi UFJ Financial Group (MUFG), Bank Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank intend to enhance corporate settlements and lower transaction expenses through a yen-based stablecoin initiative utilizing MUFG\u2019s stablecoin issuance framework, Progmat.<\/p>\n

The banks, which collectively service over 300,000 corporate clients, aim to standardize the token to ensure it\u2019s interoperable for payments within and between businesses. The consortium plans to launch the stablecoin by the close of the year.<\/p>\n

Mitsubishi Corp. will be the first organization to implement the stablecoin for internal transfers. With more than 240 subsidiaries worldwide, the company aspires to simplify international payments on dividends, acquisitions, and customer transactions, reducing fees and administrative burdens.<\/p>\n

If successful, the endeavor could establish Japan\u2019s inaugural bank-supported stablecoin network under a unified system.<\/p>\n

\u201cETFtober\u201d expands, with over five new crypto ETFs submitted this week<\/h2>\n

A surge of activity has occurred in the realm of crypto exchange-traded funds, with at least five new product applications lodged with the US Securities and Exchange Commission this week, despite the ongoing government shutdown.<\/p>\n

The latest development came from VanEck, which submitted<\/a> an S-1 form with the SEC on Thursday for the VanEck Lido Staked Ethereum ETF, which will follow the performance of stETH, Lido\u2019s liquid staking token.<\/p>\n

Lido possesses the majority of staked Ether. Source: <\/em>Dune Analytics<\/em><\/a><\/figcaption><\/figure>\n

Due to the protocol-based liquid staking activities underpinning stETH, \u201cthe trust anticipates accruing certain staking rewards through its ownership of stETH,\u201d it remarked.<\/p>\n

21Shares submitted<\/a> for a leveraged crypto ETF with 2x exposure to the Hyperliquid<\/a> native token, HYPE, on Thursday. The leverage applies solely to the single-day performance of the token, rather than longer durations.<\/p>\n