OKXICE, a joint venture between crypto exchange OKX and New York Stock Exchange parent Intercontinental Exchange (ICE), has notified the U.S. Securities and Exchange Commission (SEC) of plans to launch a tokenized stock trading venue. The announcement was made by Andrew Cuomo, the venture's co-chair.
The venue will initially offer blockchain-based shares of more than 60 U.S.-listed companies. Tokenized stocks are digital versions of regular shares that exist on a blockchain, enabling trading outside normal market hours and faster settlement compared to traditional stocks.
Tokenized shares will carry the same rights as regular stock, including dividends and voting rights. Companies whose shares are tokenized will have 30 days to object to the tokenization of their stock.
The initiative relies on a new SEC rule issued on September 17, known as the Innovation Exemption. The exemption permits qualifying venues to trade tokenized U.S. stocks using automated market makers and liquidity pools. The exemption is temporary and valid for five years.
OKX and ICE formed the 50-50 joint venture in June to build infrastructure for tokenized financial products. While crypto exchanges have offered tokenized U.S. stocks for some time, these have been available only to customers outside the United States. The tokenized stock market has grown rapidly, with a total value of approximately $3.2 billion, representing a 15% increase in the past month.
The launch remains subject to regulatory steps, including the 30-day objection period for companies and other regulatory approval processes.
