Nine U.S.-listed companies have formally objected to tokenized versions of their shares trading on OKXICE, according to an Oct. 15 public notice from the cryptocurrency exchange venture. The companies filing objections are Cerebras Systems, Applovin, Applied Digital, Rocket Lab, Coreweave, Verizon, Applied Optoelectronics, Broadcom, and Unitedhealth Group.
OKXICE is a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange. The venture plans to enable 24-hour, seven-day-a-week trading of digital versions of U.S. stocks, departing from conventional market hours restrictions.
How the Tokenized Trading Model Works
Under OKXICE's proposed arrangement, an independent third party would hold actual company shares through a registered broker-dealer. Each digital token would represent an entitlement to one underlying share, including associated dividend and voting rights. Investors would trade tokenized shares against stablecoins including USDC, USDT, and USDG on permissioned Uniswap v4 liquidity pools on OKX's X Layer blockchain.
The platform operates under temporary SEC exemptive relief rather than conventional exchange registration. Participation requires identity verification and an approved digital wallet.
The Impact of Company Objections
The Securities and Exchange Commission's temporary exemption includes an issuer objection mechanism that allows companies to formally oppose having their shares tokenized by an unaffiliated third party. This mechanism can prevent those securities from entering the venue's trading pools, creating a practical obstacle for OKXICE's planned offerings.
The Oct. 15 notice does not explain the reasons behind the nine companies' objections or clarify whether they oppose tokenization generally or object to this specific arrangement.
Broader Implications
The objections highlight a potential tension in Wall Street's blockchain ambitions. While technology can enable around-the-clock trading and regulators can create regulatory pathways for such arrangements, the companies whose shares would be tokenized retain the ability to object to their participation in such venues.
