Major corporations, including Verizon and Broadcom, have objected to their shares being traded on the new OKXICE tokenized stock platform.
Resistance from Major Corporations
Several leading companies have raised objections to the trading of their shares on the upcoming OKXICE TSV, a tokenized stock platform jointly developed by crypto exchange OKX and the Intercontinental Exchange (ICE), which operates the NYSE. The objections were made public in a notice dated October 15 and involve nine issuers, including notable names such as Verizon, Broadcom, and UnitedHealth Group.
Other companies expressing concerns include Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, and Applied Optoelectronics. While the specific reasons for their objections have not been disclosed, the notice indicates uncertainty regarding whether these stocks will be excluded from the platform.
Nasdaq's Precautionary Measures
In a related move, Nasdaq has announced that it will withdraw its own shares from the SEC’s innovation exemption framework. A Nasdaq spokesperson highlighted concerns about the platform's ability to provide real-time pricing and accurate trade reporting, which are critical for investor protection. This decision comes despite Nasdaq having previously received SEC approval for its own tokenized securities pilot earlier this year.
Understanding the OKXICE TSV Model
The OKXICE TSV aims to operate continuously, utilizing Uniswap v4 liquidity pools on OKX’s XLayer blockchain, with trading settled in stablecoins like USDC and USDT. The platform represents a significant test of the SEC’s innovation exemption, allowing certain platforms to trade tokenized U.S. stocks without the need for full exchange registration. However, the venue is not registered with the SEC and is not subject to Regulation NMS, which is designed to ensure that investors receive the best prices available.
Tokenized shares are created by third parties, which hold actual shares through a registered broker-dealer. Token holders are expected to retain the same dividends and voting rights as traditional shareholders, although trading will be limited to a fraction of each stock's typical volume, and operators can modify the platform’s smart contracts without prior notice.
Despite the potential for tokenized stocks, a recent International Monetary Fund report indicated that while there is interest in this market, particularly outside standard trading hours, it remains volatile and lacks liquidity.
