Fifty public companies have formally expressed their objections to the tokenization of their shares on OKXICE, a joint venture involving the cryptocurrency exchange OKX and the Intercontinental Exchange (ICE), which owns the New York Stock Exchange. This objection comes as the venue’s initial 30-day notice period approaches its conclusion on Tuesday.
As of October 30, the notice included an additional twelve objectors, among them Nvidia, Costco, Nike, Micron, and Reddit. These companies join prominent names such as Microsoft, Alphabet, JPMorgan Chase, Goldman Sachs, Walmart, Broadcom, Verizon, and Intel. According to a tally by CoinDesk, of the 62 companies initially proposed for tokenization by OKXICE, 43—approximately 69%—have raised objections.
The number of objecting companies has increased significantly: there were nine objections on October 15, followed by 16 on October 19, 38 by October 28, and reaching 50 just two days later.
Understanding the Opt-Out Mechanism
The objections arise from the SEC’s “Innovation Exemption,” which was established on September 17. This exemption allows tokenized securities venues (TSVs) to trade blockchain representations of U.S. stocks via automated market makers without the need for exchange registration. If a company’s stock is tokenized by an unaffiliated third party, the venue is required to inform the issuer, granting them a 30-day window to file a written objection. In the absence of a response, consent is assumed, and once the window closes, no further objections can be filed.
OKXICE aims to facilitate round-the-clock trading of tokens that are supported on a one-to-one basis by underlying shares, utilizing stablecoins such as USDC within permissioned liquidity pools on OKX’s X Layer blockchain.
The companies that have objected have not publicly articulated their reasons. JPMorgan has indicated that while it remains optimistic about tokenization, it is keen on ensuring that its shares are appropriately represented and traded. Olivia Vande Woude, head of tokenization at Ava Labs, has suggested that the simplicity of the opt-out process will likely lead to an increasing number of objectors.
Nasdaq’s Involvement
The situation has adopted a competitive dimension, as indicated by an executive from a Nasdaq-listed company who disclosed that a Nasdaq representative had encouraged them to object and offered a call to discuss the rationale behind this suggestion. While Nasdaq did not comment on the claim, it reaffirmed its stance that TSVs may not represent the most effective avenue for tokenization.
Nasdaq posits that venues operating outside the National Market System could lead to liquidity fragmentation and may not provide real-time best-price information or consolidated-tape reporting. In response, Nasdaq is collaborating with Kraken to develop its own issuer-centric Nasdaq Equity Token, projected for launch in the second quarter of 2027.
Additionally, a full-page advertisement in the Wall Street Journal has been distributed, urging CEOs to opt out. The ad, titled “YOUR STOCK. THEIR TOKENS. YOUR PROBLEM.,” provides a QR code linking to Nasdaq’s FAQ. It was financed by the conservative nonprofit Common Sense Leadership Fund, which Nasdaq has stated it is not affiliated with and did not support financially.
Andrew Cuomo, co-chair of OKXICE and former Governor of New York, described the objections as a “natural response,” highlighting that the market is witnessing the inception of a fundamentally altered market structure.
For context, a tokenized stock refers to a blockchain token that is backed one-for-one by a physical share held by a third party. OKXICE enables such tokens to be traded continuously against stablecoins such as USDC. Under the SEC’s Innovation Exemption, the venue is authorized to list these tokens without the consent of the issuing company, unless the company objects within the designated 30-day period.
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