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Sixteen issuers have formally asked to keep their shares off OKXICE TSV, the tokenized stock venue planned by crypto exchange OKX and Intercontinental Exchange, the parent of the New York Stock Exchange, according to Cointelegraph. The companies named in the venue’s notice updated Monday include Microsoft, Google parent Alphabet and Goldman Sachs.
Cointelegraph reported that the notices did not state reasons. Of the 62 companies proposed for the platform, about 25% have now issued objections, Cointelegraph reported.
Also read: OKXICE Files SEC Notice for 24/7 Tokenized Stock Venue
Key facts
- OKXICE reported 16 notices of issuer objection in a notice dated Oct. 19, up from nine in a notice dated Oct. 15, according to Decrypt.
- The seven companies added were Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald’s and Western Digital (Decrypt).
- The earlier group of objecting issuers included Verizon, Broadcom, UnitedHealth Group, CoreWeave and Rocket Lab (Decrypt).
- OKXICE co-chair and former New York Governor Andrew Cuomo told CoinPulseHQ on Tuesday that the notices were “not objections” and that he expected more companies to wait and watch.
- The venue is set to run 24/7 on permissioned Uniswap v4 liquidity pools on XLayer’s blockchain, with tokenized shares paired against USDT, USDC or Global Dollar.
What changed in the filing language
Decrypt reported that Monday’s notice also changed how the venue describes whose tokens it will offer. The Oct. 15 version referred to stocks tokenized by third parties unaffiliated with the companies; the updated version says shares may be tokenized by an outside party or by the issuer itself. Under the third-party model described in the notice, a tokenizer buys and holds real shares one-for-one through a registered broker-dealer and issues tokens intended to carry the same dividend and voting rights.
Neither notice explains the companies’ reasons, or whether an objection keeps a stock off the platform, according to Decrypt. Cointelegraph quoted one expert saying the notices could relate to companies “not knowing what happens to their price” on the proposed venue.
Also read: OKX Closes Funding Extension at $25B With Circle, Ripple Backing
Cuomo, speaking to CoinPulseHQ, compared the objectors to companies standing at the edge of a pool while others test the water, and said he expected more notices. Goldman Sachs’s presence on the list stands out because of the bank’s existing investments in blockchain-based markets, Decrypt noted.
Why it matters
The objections put a public count on corporate resistance to third-party tokenization of public equity, and the new wording in the notice may let issuers take a direct role in how their shares appear onchain rather than only opting out. As covered by Decrypt, OKXICE is set to operate under the SEC’s innovation exemption, which lets venues trade tokenized US stocks without registering as exchanges and acknowledges that OKXICE is not subject to Regulation NMS or fair-access rules. Nasdaq, which won SEC approval for its own tokenized securities pilot, has said it will opt its shares out of the exemption and separately told The Wall Street Journal it does not want its stock on a venue that does not show best prices in real time or report trades to the consolidated tape.
What to watch
Whether the objection count keeps rising in OKXICE’s next notice update, and how the SEC treats the venue’s exemption filing as more issuers weigh in.
Reported by cointelegraph.com.
Sources: Cointelegraph, Decrypt