Walmart, Eli Lilly Join Growing Opposition to OKX–ICE Tokenized Stock Trading Plan
Walmart, Eli Lilly and three other companies have joined a growing group of businesses objecting to a proposed tokenized stock trading venture involving cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The latest disclosures bring the number of objections to 38 of the original 62 companies identified in connection with the initiative, according to a CoinDesk tally.
Carnival, Arcos Dorados and Cigna also appeared in an updated public notice dated Oct. 28. The expanding list reflects corporate caution toward a regulatory framework that could allow blockchain-based trading of U.S. stocks outside traditional market structures.
More Companies Raise Objections to OKX–ICE Venture
Walmart (WMT) and Eli Lilly (LLY) were among the latest companies to object to the proposed trading arrangements. Carnival (CCL), Arcos Dorados (ARCO) and Cigna (CI) were also named in the updated notice. Some of the companies raising objections, including Arcos Dorados and Cigna, were not part of the venture's original roster of proposed listings.
Earlier objections also came from Cerebras Systems, Arm Holdings and Wells Fargo, which were outside the initial list. JPMorgan Chase was another company whose objection appeared in the Tuesday notice referenced in the report.
The growing opposition underscores uncertainty among public companies about how tokenized shares should be represented, traded and integrated into emerging blockchain-based financial markets. Although the regulatory framework creates room for experimentation, issuers are still assessing the potential benefits and risks of allowing their shares to trade through these venues.
SEC Exemption Allows Testing of Tokenized Stock Trading
OKXICE published its initial public notice on Oct. 4, outlining plans to enable stock trading around the clock. The initiative operates within a five-year exemption framework from the U.S. Securities and Exchange Commission (SEC), which allows qualifying venues to trade tokenized U.S. stocks through automated market makers.
Automated market makers are software-based trading systems that facilitate transactions using pools of assets. Under the framework described in the report, when an unaffiliated third party tokenizes a company's shares, the trading venue must notify the issuer and provide a 30-day period in which the company can object.
The process creates an important distinction for companies deciding whether to respond. As discussed in CoinDesk's Tokenization Weekly, objecting carries no cost, while failing to object can allow trading to proceed without a later mechanism for withdrawing that consent.
That structure may encourage issuers to take a cautious approach while the market develops. Companies must consider how their shares could be represented and traded on blockchain-based platforms before deciding whether to permit participation.
JPMorgan Chase Leaves Door Open to Future Participation
JPMorgan Chase said its objection to the OKX–ICE venue did not mean it had ruled out participating in tokenization markets in the future.
A spokesperson told CoinDesk that the bank recognized tokenization's potential but wanted to carefully assess how its shares would be represented and traded. The spokesperson said the company had decided against participating in the venue at this stage while continuing to evaluate opportunities as the market evolves.
The statement indicates that an objection to a specific trading arrangement does not necessarily represent a rejection of tokenization as a broader financial technology. Companies may still explore alternative structures as regulatory conditions and market practices develop.
Issuer-Sponsored Tokenization Offers an Alternative Route
A separate development involving Canton Strategic Holdings (CNTN) illustrates another approach to bringing shares onto blockchain-based marketplaces. The company said Thursday that its shares could begin trading on the Canton-based marketplace TSV LLC as early as Monday, with Fairmint serving as transfer agent.
That arrangement uses issuer-sponsored tokenization, in which the company participates directly in the tokenization process. According to the report, this structure avoids the 30-day objection process applicable when an unaffiliated third party tokenizes a company's shares.
The contrasting approaches highlight how the structure of a tokenization initiative can affect issuer participation. While the OKX–ICE proposal has encountered objections from a growing number of companies, the Canton Strategic Holdings arrangement demonstrates an alternative model based on direct issuer involvement.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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