The list of companies objecting to tokenized stock trading on OKXICE TSV continues to grow. Wells Fargo, Cisco Systems, Marvell Technology, Arm Holdings, Moderna, and Intuit are among six new issuers named in an updated public notice from OKXICE TSV dated October 23. This brings the total number of objecting companies to 22, up from nine on October 15.
Earlier objectors include Microsoft, Alphabet, Goldman Sachs, Verizon, Broadcom, UnitedHealth Group, and Qualcomm. The notices do not explain the companies' reasons for objecting or specify what effect an objection has on whether a stock can trade on the platform.
OKXICE TSV is a 50-50 joint venture between NYSE owner Intercontinental Exchange and OKX's U.S. holding company. The venue plans to allow approved users to trade tokenized U.S. stocks 24/7 through Uniswap v4 liquidity pools on OKX's XLayer blockchain, paired with stablecoins such as USDC.
The venue will operate under the SEC's innovation exemption, unveiled in September. According to an October 19 notice, the venue can list shares tokenized by issuers themselves as well as by outside parties.
Risk Factors Disclosed
OKXICE TSV's latest notice details several operational risks. Beyond pausing when the underlying stock is halted, the platform does not use circuit breakers. The venue has no policies addressing maximal extractable value, the profit traders can capture by reordering transactions on a blockchain.
The notice warns that broker-dealers trading on the platform face unsettled questions about trade reporting and best execution requirements, which could limit participation and reduce liquidity. Administrators can upgrade smart contracts without advance notice to users. Additionally, the contract controlling who can trade has been audited only internally.
Nasdaq, which won SEC approval for its own tokenized securities pilot, has said it will opt its shares out of the exemption.
