Wells Fargo, Cisco and Four Other Companies Object to OKXICE Tokenized Stock Plan
Wells Fargo, Cisco, Arm Holdings, Moderna, Intuit and Marvell Technology are among the latest companies to object to a proposed tokenized stock trading platform developed by crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. Their objections bring the total number of companies that have rejected participation on the proposed venue to 22, highlighting challenges for a new framework designed to bring blockchain-based stock trading to US investors.
The six companies were identified in an updated public notice filed Friday by OKXICE, the joint venture between OKX and ICE. The objections come as companies assess whether to participate in the Securities and Exchange Commission's new framework for tokenized securities, which could allow qualifying venues to offer stock trading through blockchain infrastructure.
OKXICE Faces Objections From Major Public Companies
The latest objections add to a list that already includes major publicly traded businesses such as Microsoft, Alphabet, Goldman Sachs and McDonald's. The growing number of companies declining participation presents a challenge for a model intended to enable US investors to trade tokenized stocks around the clock.
However, the 22 objections do not all represent companies withdrawing from the venture's original proposed trading roster. OKXICE initially outlined 62 companies for potential trading, but Wells Fargo and Arm Holdings were not included in that selection. Cisco, Moderna, Intuit and Marvell Technology were among the companies originally listed. Cerebras Systems, which had objected earlier, was also outside the initial roster.
An objection prevents a company's shares from being traded on the notifying venue under the proposed arrangement. It does not necessarily mean the company opposes every form of tokenized stock trading.
SEC Framework Allows Tokenized Securities Testing
The SEC's five-year Innovation Exemption allows qualifying tokenized securities venues, or TSVs, to test blockchain-based trading through automated market makers. These systems execute trades using pools of assets, while the framework gives companies the ability to object to having their shares included.
OKXICE issued its initial public notice on October 4, outlining plans to use Uniswap liquidity pools on OKX's XLayer blockchain. Transactions would be settled in stablecoins, and venues must notify issuers and allow 30 days for objections before offering tokenized versions of their shares.
The initiative is backed by ICE, one of the world's major exchange operators. Its proposed structure could enable stock trading beyond conventional market hours, although the growing list of objections could limit the number of companies available on the platform.
Andrew Cuomo Says Companies May Wait Before Participating
Andrew Cuomo, OKXICE's co-chairman and a former governor of New York, said earlier in the week that companies' reluctance to participate immediately was anticipated.
“We always anticipated that, because this is such a dramatic and revolutionary change, many companies would want to wait and see how it goes rather than be the first to participate,” Cuomo said during a Monday press call.
Cuomo also described the framework as “a sandbox — a model demonstration,” pointing to limits on participating companies and trading volumes. His comments suggest the initial phase is intended to test the model, while companies assess how tokenized stock trading develops.
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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