SpaceX has objected to the proposed listing of tokenized versions of its shares on OKXICE, a trading venue jointly operated by crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The objection was disclosed in a Nov. 2 public notice from OKXICE.
With its objection, SpaceX joins Tesla and Amazon among 56 companies that have opposed proposed tokenized stock listings on the platform.
Regulatory Framework and Company Objections
Under the Securities and Exchange Commission’s five-year Innovation Exemption introduced in September, platforms like OKXICE can offer trading in tokenized versions of US stocks without registering as national securities exchanges. However, the framework gives companies a 30-day window to object to the proposed trading of their shares tokenized by third parties, effectively preventing those tokens from being listed on the venue.
Tokenized stocks are blockchain-based representations of company shares that allow investors to gain exposure to traditional equities onchain, often around the clock. Depending on the structure, they can be backed by actual shares, although the rights granted to tokenholders may differ from those of traditional shareholders.
OKXICE co-chair and former New York Governor Andrew Cuomo told Cointelegraph on Oct. 20 that the venture expected more objections as companies avoided being the first to test the model.
Offshore Trading Activity
SpaceX’s objection comes despite tokenized versions of its shares already trading on platforms outside the US, where they have attracted significant trading activity since the company’s June public offering.
Ahead of the SpaceX listing, Backpack Securities, a stock brokerage and tokenization platform, and crypto exchange Kraken, through its xStocks offering, both prepared tokenized versions of the aerospace company’s stock, each designed to be backed by actual shares. Backpack’s SPCX token recorded $1.08 billion in onchain trading volume in June, while Kraken’s SPCXx token recorded $852 million.
Unlike Backpack and Kraken, OKXICE would open tokenized stock trading to US investors under the SEC’s new regulatory framework, potentially tapping into the world’s largest equity market by capitalization and expanding the investor base for tokenized securities.
Nasdaq Warning and Cuomo’s Remarks
Nasdaq warned issuers in September that they “must be cautious about their participation” in the venture, arguing that tokenized stock trading could fragment liquidity and undermine long-term shareholder value.
Despite the growing opposition, Cuomo said during an Oct. 30 press conference that as people see the benefits of tokenization, “you’ll see more and more companies participate.”
