We have demonstrated the generation of a 320 Gb/s NyquistOTDM signal by rectangular filtering on an RZ-OTDM signal with the filter bandwidth (320 GHz) equal to the baud rate (320 Gbaud) and the reception of such a Nyquist-OTDM signal using polarization-insensitive time-domain optical Fourier transformation (TD-OFT) followed by passive filtering. After the time-to-frequency mapping in the TD-OFT, the NyquistOTDM signal with its characteristic sinc-shaped time-domain trace is converted into an orthogonal frequency division multiplexing (OFDM) signal with sinc-shaped spectra for each subcarrier. The subcarrier frequency spacing of the converted OFDM signal is designed to be larger than the transform-limited case, here 10 times greater than the symbol rate of each subcarrier. Therefore, only passive filtering is needed to extract the subcarriers of the converted OFDM signal. 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