The SEC's new framework for tokenized stock trading is facing resistance from major companies whose shares could be listed on the platform. Broadcom, Verizon, and UnitedHealth are among nine issuers that have objected to having their shares trade on OKX-ICE's planned tokenized-stock venue, according to an October 15 public notice from the joint venture between crypto exchange OKX and Intercontinental Exchange.
The other objecting companies are AppLovin, Applied Digital, Rocket Lab, CoreWeave, Applied Optoelectronics, and AI chipmaker Cerebras Systems. The notice did not disclose the reasons for the objections or when the companies submitted them.
OKX-ICE announced on October 5 that it had notified the SEC of plans to launch the venue, initially targeting shares of 63 U.S.-listed companies. The platform would operate under the SEC's five-year "Innovation Exemption," issued September 17, which allows qualifying platforms to trade tokenized U.S. stocks using automated market makers and liquidity pools.
Nasdaq separately said it would opt out of having its own shares tokenized under the framework. A Nasdaq spokesperson told the Wall Street Journal that the company does not want its shares trading on a venue that does not display best prices in real time or report to the consolidated tape, which aggregates stock-market trading data.
How tokenized stock trading would work
Tokenized stocks are blockchain-based representations of shares. OKX-ICE plans to operate around the clock using Uniswap v4 liquidity pools on OKX's XLayer blockchain, with trades settled in stablecoins. Underlying shares would be held one-for-one against outstanding tokens through a registered broker-dealer, and token holders would receive equivalent rights, including dividends and voting rights.
Broader concerns about the framework
According to TD Securities analysts, conversations with dozens of issuers revealed "little interest in tokenizing their shares outside a small group of crypto-adjacent companies." Several issuers approached the firm with significant concerns after discovering the framework, having been unaware of it when it was announced.
The analysts identified the framework's reliance on temporary exemptive relief, rather than permanent rules, as its largest hurdle. A future SEC commission could reverse the approach, complicating the case for investing in infrastructure and discouraging institutions from integrating with venues even after they launch. The uncertainty is especially challenging when overseas platforms can continue offering synthetic stock products without assuming the operational requirements of the U.S. relief.
