Nine Companies Object to Tokenized Stock Listings on OKXICE Venue

Oct 17, 07:56 PM UTCNeutralMedium impact

Nine U.S.-listed companies have formally objected to having tokenized versions of their shares offered on OKXICE, a digital trading venture formed by crypto exchange OKX and Intercontinental Exchange. The objectors include Broadcom (AVGO), Verizon (VZ), CoreWeave (CRWV), UnitedHealth Group (UNH), AppLovin (APP), Rocket Lab (RKLB), Applied Digital (APLD), Applied Optoelectronics (AAOI), and Cerebras Systems (CBRS). Under regulatory rules, third-party venues must notify companies 30 calendar days before trading begins, giving issuers a 30-day window to block the listing.

The pushback highlights corporate caution regarding unsponsored digital share offerings. Applied Optoelectronics noted uncertainty surrounding how tokenization might impact share price, trading volume, and market volatility, while warning that unsponsored offerings could confuse investors. Separately, Nasdaq has signaled plans to opt out of share tokenization under the current Securities and Exchange Commission framework, expressing concern that trading outside the national market system lacks real-time price transparency and consolidated tape reporting.

Despite the objections, venue organizers plan to move forward with tokenized trading for dozens of other major U.S. equities, including Apple (AAPL), Nvidia (NVDA), and Microsoft (MSFT). Under the five-year SEC innovation exemption established in September, an objection applies only to the specific venue issuing the notice, leaving other venues free to proceed unless separately blocked. The broader tokenized stock market has grown significantly, rising from approximately $680 million at the beginning of the year to roughly $3.5 billion by mid-October.

Key points

Nine U.S. companies filed formal objections to stop OKXICE from listing tokenized versions of their shares.
Objectors include Broadcom, Verizon, CoreWeave, UnitedHealth Group, AppLovin, Rocket Lab, and Applied Optoelectronics.
Companies cited concerns over stock price volatility, liquidity risks, and potential investor confusion.
SEC rules grant issuers a 30-day window to object before a third party can begin tokenized trading.
Total tokenized stock market value grew from roughly $680 million early in the year to about $3.5 billion by mid-October.

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Questions and answers

Why are companies objecting to tokenized stock trading on OKXICE?

Companies have raised concerns about how tokenization could affect stock prices, liquidity, and volatility. They also cited risks of investor confusion regarding unsponsored offerings and a lack of clear benefit to shareholders.

How does a company block tokenized trading of its shares?

Under the SEC innovation exemption, a trading venue must give a company 30 days notice before tokenizing its shares. The company then has 30 calendar days to file a formal objection, which prevents that specific venue from offering the tokenized stock.

Is tokenized stock trading allowed in the U.S.?

The SEC issued a five-year innovation exemption on Sept. 17 that allows approved venues to trade tokenized versions of U.S.-listed stocks without registering as traditional national exchanges, provided they notify issuers in advance.