Upto 9 US-listed companies have objected to the tokenized trading of their shares on OKXICE. OKXICE is a joint venture by Intercontinental Exchange (ICE) and OKX crypto exchange. OKXICE is preparing to launch 24/7 trading of tokenized US equities. However, this blockade from 9 US companies will prevent OKXCIE from offering their stocks through its Tokenized Securities Venue (TSV).
According to a public notice, the 9 companies mentioned above include Cerebras, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon, Applied Optoelectronics, Broadcom, and UnitedHealth.
SEC Framework Allows Companies to Object to Tokenized Shares
The objections from the above-mentioned companies fall under the US Securities and Exchange Commission’s (SEC) Innovation Exemption framework. Under the process described in the notice, platforms seeking to trade tokenized versions of US-listed stocks must notify the relevant companies. The companies then have 30 days to formally object.
A timely objection prevents the specific trading venue from offering that company’s tokenized shares. The restriction applies to only that specific trading venue. The stocks can be traded on other platforms.
8 out of these 9 companies were included among the list of stock tickers OKXICE had previously indicated for listing. Cerebras was not included in the original list. Applied Optoelectronics publicly raised concerns about the potential impact of third-party tokenized shares on its stock price, liquidity, and volatility.
OKXICE Plans to Proceed with Dozens of Tokenized Stocks Trading
Despite the objections, OKXICE is moving forward with its broader tokenized equities initiative. Its planned offerings include big names such as Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, JPMorgan Chase, and Walmart.
The nine objections affect roughly 14% of the initially planned stock offerings. The remaining planned listings will still depend on applicable requirements. OKXICE has described its tokenized securities as being backed one-for-one by underlying shares. The precise rights available to holders will depend on the final product structure.
