Nine US-listed companies object to tokenized trading of their shares on OKXICE

what happened

Nine companies whose shares trade in the United States have filed objections to tokenized versions of their stock on OKXICE, a joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, The Block reported, citing a public notice from the venue. The objectors include Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon, Applied Optoelectronics, Broadcom and UnitedHealth Group. No reasons were given. Applied Optoelectronics told the Wall Street Journal it was unsure how tokenization would affect its share price, liquidity and volatility.

Nasdaq said it will opt out of having its own shares tokenized under the SEC framework, arguing that venues not displaying best prices in real time or reporting to the consolidated tape fall short of its standards. The exchange says it remains committed to tokenization.

OKXICE still plans to launch trading in dozens of U.S.-listed companies, including Nvidia, Apple and Microsoft, operating under the SEC's five-year innovation exemption, which lets tokenized securities venues trade without registering as exchanges.

why it matters

The precedent matters more than the list: companies can block tokenized versions of their shares on a specific venue, not across the market. That could slow the spread of tokenized equity trading and affect liquidity and price transparency. The SEC has not finalized its permanent rules.

market impact

US large-cap stocks: objections may limit tokenized versions of these shares on OKXICE

tags

instruments