Key Takeaways
Intel, Oracle, IBM, and IonQ are the latest companies to object to OKXICE’s tokenized stock plan, bringing the total number of corporate objections to 26.Major companies including Microsoft, Alphabet, Goldman Sachs, Wells Fargo, McDonald’s, and Qualcomm have also objected to the proposal, which would enable 24/7 blockchain-based stock trading.OKXICE co-chair Andrew Cuomo previously downplayed the growing resistance, suggesting some companies would embrace tokenization while others wait to see how the technology develops.
OKXICE Objectors List Grows to 26 Firms
Intel, Oracle, International Business Machines (IBM), and quantum computing firm IonQ are the latest companies to formally object to the tokenization of their shares under a plan from OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.
The four companies appeared on an updated public notice dated October 26, bringing the total number of objecting issuers to 26, up from 22 as of last week. The notice confirms that OKXICE has received formal objections from each company, though it does not specify their individual reasons for opposing the plan.
The latest objections add some of the technology sector’s most recognizable names to a growing list of corporate holdouts. Other major companies that have already objected include Microsoft, Google parent Alphabet, Goldman Sachs, McDonald’s, Qualcomm, Broadcom, Verizon, UnitedHealth Group, and Caterpillar.
The controversy centers on OKXICE’s proposal to offer blockchain-based representations of publicly traded stocks, allowing investors to trade tokenized equities around the clock rather than being restricted to traditional stock market hours.
The venture initially proposed tokenizing shares of 63 companies under a temporary exemption introduced by the U.S. Securities and Exchange Commission (SEC) in September. The framework permits qualifying tokenized securities venues to operate without satisfying certain regulatory requirements that apply to traditional stock exchanges.
However, the exemption also allows companies to prevent their shares from being tokenized by unaffiliated third-parties through a formal objection process.
Under OKXICE’s proposed system, tokenized shares would be backed one-for-one by actual stocks held through a registered broker-dealer. Investors would retain corresponding shareholder rights, including dividends and voting privileges.
Trading would occur through permissioned Uniswap v4 liquidity pools deployed on OKX’s X Layer blockchain, with stablecoins used for settlement. The platform plans to operate 24 hours a day, seven days a week.
The growing opposition presents a challenge for OKXICE as it attempts to establish a new market for tokenized equities.
Cuomo’s Comments on Tokenization Objections
As Bitcoin.com News previously reported, former New York Gov. Andrew Cuomo, who serves on OKX’s board and co-chairs the OKXICE venture, addressed the mounting corporate resistance during an October 20 press conference.
Cuomo characterized the SEC’s new regulatory framework as an experiment, suggesting that some companies would embrace blockchain-based stock trading immediately while others would prefer to observe how the technology and market structure develop.
“There’ll be other companies that say: I want to be the first in the pool,” Cuomo told reporters.
“This is a 24-seven world,” he added, questioning why U.S. securities markets should remain restricted to conventional trading hours when investors operate globally.
Meanwhile, the competition to establish tokenized securities markets is intensifying. Nasdaq invested $100 million in Kraken parent company Payward in September, with plans to launch a separate tokenized securities venue in 2027.
Nasdaq has also published guidance warning companies about potential risks associated with tokenized trading venues, and indicated that it intends to opt out of the SEC’s tokenization framework for its own shares. Seventeen of the 26 current objecting firms trade on the Nasdaq, representing about 65% of the tally, with the rest listed on ICE’s New York Stock Exchange.
While the growing list of objections does not necessarily signal opposition to stock tokenization more broadly, it highlights concerns among major corporations about having their shares represented and traded on third-party blockchain platforms without their participation or approval.
