Ondo Seeks SEC Clarity on Tokenized Stocks Amid Market Rule Rewrite

Ondo Finance has urged the US Securities and Exchange Commission (SEC) to consider tokenized securities as it reviews changes to long-standing equity market rules. The company submitted a comment letter on August 11, supporting the rescinding of Rules 611 and 610(e), but arguing that the new framework should reflect emerging alternative execution models.

Ondo wants the SEC to recognize completed request-for-quote (RFQ) execution for both traditional and tokenized stocks. This method allows investors to request prices from multiple liquidity providers, executing against the most favorable quote. Ondo pointed to the use of RFQ in markets such as US Treasuries, corporate bonds, and European ETFs.

The company also argued that recent developments in tokenized securities should be reflected in the SEC's economic analysis. It cited the regulator's approvals allowing Nasdaq and NYSE to support tokenized versions of certain stocks and ETFs through DTC-linked infrastructure.