Opposition to OKXICE's tokenized stock proposal has grown to 33 companies, more than half of the 62 issuers originally identified by the joint venture between crypto exchange OKX and Intercontinental Exchange.
Seven companies were added to the opposition list in an updated notice filed Tuesday evening: JPMorgan Chase, AMD, Coca-Cola, Applied Materials, Adobe, Dell and SanDisk.
What the venture proposed
OKXICE proposed a platform that would allow tokenized versions of publicly traded stocks to trade around the clock, offering faster settlement, broader access and greater flexibility beyond traditional market hours.
The proposal raised questions about how companies whose shares would be represented on the platform are consulted, and how their concerns are addressed.
How the objection process works
Under the SEC's Innovation Exemption framework, issuers can object to having their securities tokenized on a specific trading venue. The mechanism is narrower than a blanket rejection of tokenization: it allows companies to express their position on a particular platform and approach.
Objections target a specific arrangement
JPMorgan, for example, has been active in blockchain-based financial services, including through its Onyx digital payments network and work on tokenized deposits. Its objection to OKXICE's proposal should therefore be viewed in the context of a specific arrangement rather than as evidence that the bank opposes tokenization as a whole.
For other companies, the decision may similarly come down to how their securities would be handled under the proposed model. Issuers may have distinct preferences concerning trading venues, custody and the representation of shares on blockchain networks.
Objections from Adobe, Dell and other companies do not necessarily indicate opposition to tokenized equities in general.
What it means for the venture
OKX and Intercontinental Exchange, which operates the New York Stock Exchange, have significant resources and experience across crypto trading and traditional markets. The objections do not determine the future of tokenized equities, but they present a clear consideration for the venture as it assesses the proposal and its next steps.
