Nvidia, Costco, Nike, Reddit and nine additional firms have filed formal objections to OKXICE’s proposal to offer tokenized versions of their U.S. equities, raising the total number of objectors to 50 out of the 63 companies initially identified.
Scope of the opposition
The 50 objections represent roughly 79% of the targeted companies and cover about $25 trillion in market capitalization. More than half of the objectors trade on the Nasdaq, while 42% are listed on the New York Stock Exchange, which is owned by Intercontinental Exchange, a partner in the OKXICE joint venture.
Companies joining the list
In addition to Nvidia, the new objectors include cybersecurity firms CrowdStrike and Palo Alto Networks, semiconductor maker Micron Technology, glass and materials company Corning, Hewlett Packard Enterprise, bitcoin‑mining and AI infrastructure firm IREN, USA Rare Earth, Bloom Energy, warehouse retailer Costco, athletic‑apparel giant Nike and social‑media platform Reddit.
OKXICE’s proposed model
OKXICE, a collaboration between cryptocurrency exchange OKX and ICE, plans to issue blockchain‑based tokens backed by actual shares held through registered broker‑dealers. Transactions would be settled in stablecoins via permissioned Uniswap v4 liquidity pools on OKX’s X Layer blockchain. The structure relies on temporary exemptions from the U.S. Securities and Exchange Commission that allow qualifying blockchain trading venues to operate outside certain traditional exchange rules.
Company objections and outlook
The public notice released on Oct. 30 listed the firms that have submitted formal objections but did not detail individual reasons. Co‑chair Andrew Cuomo described the initiative as an experiment in modernizing stock trading, suggesting that companies will adopt tokenization at different speeds. However, with 50 firms now objecting, the pool of stocks available for the platform’s launch has been substantially reduced.
Implications
The growing resistance highlights challenges for third‑party tokenization of U.S. equities without direct issuer participation, even as the regulatory framework permits such experiments. The objections do not necessarily indicate a broader rejection of blockchain‑based securities, but they underscore the reluctance of many large issuers to allow external tokenization of their shares.
