Costco blocked tokenized shares on OKX ICE, yet Kalshi lists a Costco perpetual
In brief
- Costco was among 67 issuers named in OKX ICE's Nov. 5 objection notice, per CryptoSlate.
- SEC's September exemption lets issuers object to third-party tokens within 30 days of notice.
- Kalshi lists a Costco perpetual with no expiry, no shares and no voting rights.
- Kalshi's Costco market page showed maximum leverage of 4.9 times on Nov. 6.
How the objection works
OKX ICE's proposed model uses a tokenization provider (acting through a registered broker-dealer) to hold one underlying share per token. Customers would trade those tokens against dollar-linked stablecoins in automated asset pools. Radmilac notes those pools can produce prices that differ from what you'd see on conventional exchanges.
The legal footing is the SEC's September exemption, which lets qualifying venues operate outside ordinary exchange registration if they meet certain conditions. Tokens have to preserve equivalent shareholder rights (votes, dividends and a claim on residual assets), so a token that only tracks price doesn't qualify, according to CryptoSlate.
Issuers also get a veto. As CryptoSlate describes the rule, an exchange must notify the issuer before offering stock tokenized by an unaffiliated third party, and each company has 30 days from receiving notice to object. SEC staff guidance confirms a timely objection has to be disclosed and keeps the venue from offering that token under the exemption.
Costco and the other objecting companies haven't collectively explained their motives.
The perp next door
Kalshi's Costco contract works differently. It has no scheduled expiry, and Kalshi's stock-perps documentation says holders receive neither shares nor voting rights. The company's Nov. 3 stock-perp launch announcement named four stocks.
Leverage is where it gets sharp. On Nov. 6, Costco's Kalshi market page showed maximum leverage of 4.9 times, meaning $1,000 of collateral supports $4,900 of price exposure. In CryptoSlate's hypothetical, a 10% move would cost $490 before fees and other adjustments, nearly half the original collateral. If collateral falls below the required minimum, the platform can close the position.
A route under challenge
CryptoSlate reported that the legal route stock-linked contracts rely on is now being challenged in court, with established Wall Street firms competing to offer these contracts.
That's the gap Radmilac's piece is built around: an issuer's objection can stop a third-party token on OKX ICE under the exemption, while Kalshi's perp offers price exposure on the same stock with no share attached.
Frequently asked questions
How could Costco block tokenized versions of its stock on OKX ICE?
Under the SEC's September exemption, as CryptoSlate describes it, an exchange must notify the issuer before offering stock tokenized by an unaffiliated third party. Each company then has 30 days to object. SEC staff guidance confirms a timely objection must be disclosed and prevents the venue from offering that token under the exemption.
What does Kalshi's Costco perpetual give holders?
It offers price exposure without any shares. The contract has no scheduled expiry, and Kalshi's stock-perps documentation says holders receive neither shares nor voting rights. On Nov. 6, Costco's market page showed maximum leverage of 4.9 times.
