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A growing number of major corporations are rejecting plans by crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, to trade tokenized versions of their shares. The number of disclosed objections reached 38 on October 28, including Walmart, Eli Lilly, Cigna, JPMorgan Chase, Microsoft and Alphabet.<\/p>\n\n\n\n
The resistance represents a significant challenge for one of the most closely watched attempts to bring traditional U.S. equities onto blockchain infrastructure. While supporters argue that tokenization could enable round-the-clock trading and faster settlement, the growing list of objectors highlights a fundamental issue: companies may not want their shares represented and traded through platforms they have not approved.<\/p>\n\n\n\n
The objections were submitted under a new framework introduced by the U.S. Securities and Exchange Commission (SEC) in September. They do not constitute a rejection of tokenization as a technology, but they could restrict which stocks are available on the planned OKXICE venue.<\/p>\n\n\n\n
OKX and ICE established their joint venture, OKXICE, to develop a blockchain-based venue for trading tokenized U.S. stocks. Its initial proposal covered 63 stock tickers representing 62 companies, including major names such as Apple, Microsoft, Amazon, Alphabet and Nvidia.<\/p>\n\n\n\n
The planned platform is designed to support trading around the clock, with transactions settled in stablecoins. It intends to use automated market makers and liquidity pools, allowing eligible participants to trade tokenized securities through blockchain-based infrastructure.<\/p>\n\n\n\n
The venture’s proposed model aims to provide tokens backed by underlying shares and carrying equivalent ownership rights, including voting and dividend entitlements. This distinction is important because not every product marketed as a tokenized stock provides direct ownership of the underlying security.<\/p>\n\n\n\n
The SEC’s September 17 Innovation Exemption created a temporary regulatory pathway for qualifying Tokenized Securities Venues (TSVs) to test this type of trading. The exemption allows eligible platforms to operate under specified conditions without meeting every requirement normally applicable to traditional exchanges.<\/p>\n\n\n\n
The latest additions to the objection list include Walmart, Eli Lilly, Carnival, Arcos Dorados and Cigna. They join companies such as Microsoft, Alphabet, Goldman Sachs, JPMorgan Chase, Coca-Cola, Adobe and Dell Technologies.<\/p>\n\n\n\n
The public notices identify the companies that objected but generally do not explain their individual decisions. It would therefore be inaccurate to assume that every issuer shares the same concerns.<\/p>\n\n\n\n
However, the debate centres on several practical issues: how tokenized trading could affect share prices and liquidity, how investors might interpret the relationship between a token and the underlying stock, and whether companies could face reputational or legal consequences from products they did not sponsor.<\/p>\n\n\n\n
Applied Optoelectronics previously provided a more explicit explanation for its objection, citing uncertainty about the effects on stock price, liquidity and volatility, as well as the risk that investors could mistakenly believe the company endorsed the offering.<\/p>\n\n\n\n
OKXICE co-chair Andrew Cuomo described the objections as an expected response to a new market structure. He said some companies would naturally prefer to observe how the system develops before participating.<\/p>\n\n\n\n
Importantly, the figure of 38 should not be interpreted as 38 rejections from the original 62-company roster. Several objecting companies were not included in the initial proposed list. At least 33 of the original 62 have objected, according to the published notices.<\/p>\n\n\n\n
Under the Innovation Exemption, a venue must notify an issuer before offering a tokenized version of its shares created by an unaffiliated third party. The company receives 30 days to object. If it does, the venue cannot list that tokenized security under the exemption.<\/p>\n\n\n\n
The framework also requires tokenized shares to provide holders with the same rights and privileges as traditional shares of the equivalent class. Smart contracts must be auditable and publicly accessible, and trading in a tokenized stock must stop whenever trading in the underlying security is halted on its primary exchange.<\/p>\n\n\n\n
The exemption is temporary, with a five-year duration, and is subject to limits on the number of securities and trading volumes.<\/p>\n\n\n\n
An objection to OKXICE does not prevent a company from pursuing a different tokenization arrangement. Issuer-sponsored models, in which the company actively participates in creating and managing the tokenized security, offer another route.<\/p>\n\n\n\n
The growing opposition could force OKXICE to adjust its initial selection of stocks, potentially limiting the appeal of the platform to investors seeking exposure to familiar blue-chip companies.<\/p>\n\n\n\n
Yet the broader tokenization market is not necessarily dependent on this single venture. Other financial institutions and infrastructure providers are developing alternative models, including arrangements in which issuers participate directly.<\/p>\n\n\n\n
The central question is whether blockchain-based equity markets can deliver meaningful advantages without compromising the legal rights and market protections associated with conventional shares.<\/p>\n\n\n\n
Tokenization may make securities easier to transfer, settle and use as collateral. But the technology alone cannot guarantee issuer cooperation, sufficient liquidity or investor confidence.<\/p>\n\n\n\n
For OKX and ICE, the challenge is no longer simply demonstrating that stocks can be traded on a blockchain. It is convincing companies, regulators and investors that the new market structure offers enough value to justify changing how traditional equity ownership is represented and traded.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
A growing number of major corporations are rejecting plans by crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, to trade tokenized versions of their shares. The number of disclosed objections reached 38 on October 28, including Walmart, Eli Lilly, Cigna, JPMorgan Chase, Microsoft and Alphabet. The resistance […]<\/p>\n","protected":false},"author":4,"featured_media":1104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-1103","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain"],"_links":{"self":[{"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1103"}],"version-history":[{"count":1,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1103\/revisions"}],"predecessor-version":[{"id":1105,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1103\/revisions\/1105"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/media\/1104"}],"wp:attachment":[{"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1103"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1103"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoindailyreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}