Nvidia, Nike among 50 companies objecting to OKXICE tokenized stock trading
In brief
- OKXICE's public notice lists 50 companies objecting under the SEC exemption's opt-out process.
- Objector count rose from 38 on Oct. 28 to 50 as of Oct. 30.
- Nvidia, Nike, Costco, Micron Technology and Reddit are among recent objectors.
- OKXICE is a 50/50 joint venture between OKX and Intercontinental Exchange.
From 38 to 50 in two days
The list grew quickly. OKXICE's public notice showed 38 objecting companies on Oct. 28, and 12 more had joined by Oct. 30, U.Today reported.
The total increased from 38 companies on Oct. 28, with 12 additional companies raising objections in just two days.
Nvidia, Nike, Costco, Micron Technology and Reddit were among the newest names. CrowdStrike, Corning, Bloom Energy, IREN, USA Rare Earth, Palo Alto Networks and Hewlett Packard Enterprise also objected recently, per the notice.
It isn't only tech and consumer brands. JPMorgan Chase, Goldman Sachs and Wells Fargo are on the list too, alongside Walmart, Coca-Cola, McDonald's, Eli Lilly, Adobe and Dell Technologies.
That's 12 new objectors in two days.
How the platform would work
OKX and ICE each own a 50% stake in OKXICE. The venture's goal is to let tokenized versions of traditional US stocks trade on the blockchain. Instead of buying shares through a traditional brokerage, eligible investors would trade blockchain tokens representing ownership interests in the underlying securities (and the platform would run 24 hours a day, seven days a week, according to the company's notice).
The opt-out process
The platform was set to rely on a temporary regulatory exemption the SEC issued on Sept. 17, according to U.Today's account. The regulator gave companies the option to object to any unauthorized third-party tokenization of their shares, and the 50 objections came through that process.
The mechanism is simple. If a company objects within the specified timeframe, the platform can't offer third-party tokenized versions of its shares under the exemption. So for now, the 50 companies on OKXICE's list won't have third-party tokenized versions of their stock offered there under that exemption.
Frequently asked questions
What is OKXICE?
OKXICE is a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the NYSE, with each owning a 50% stake. Its goal is to let tokenized versions of traditional US stocks trade on the blockchain, around the clock.
How can a company stop its shares from being tokenized on OKXICE?
Under the temporary SEC exemption issued on Sept. 17, companies could object to unauthorized third-party tokenization of their shares. If a company objected within the specified timeframe, the platform couldn't offer third-party tokenized versions of its shares under that exemption.
