Online reported that Ondo Finance sent a letter to the U.S. Securities and Exchange Commission (SEC) requesting more details of the settlement mechanism before approving Nasdaq's proposal to support tokenized stocks and ETFs. The proposal plans to process the settlement of "tokenized securities" through the American Depository and Trust Corporation (DTC) clearing system. Ondo said tokenization is ushering in a new stage of financial innovation and should be advanced through open collaboration and transparency standards, and called on the SEC to further review before making a final decision. Ondo currently manages a variety of tokenized assets, including money market funds and U.S. government securities, and is associated with the World Liberty Financial project backed by the Trump family. Nasdaq submitted a rule amendment application to the SEC last month to support stock tokenization, saying the move could promote market structural innovation without sacrificing investor protection. SEC Commissioner Hester Peirce also pointed out that asset tokenization has become a regulatory focus. However, nonprofit Better Markets warned that tokenization could weaken investor protection, and Benjamin Schiffrin, director of securities policy, said the SEC's top priority should be to protect investors rather than cater to the demands of the crypto industry.