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- OKXICE disclosed objections from nine companies, including CoreWeave, Broadcom, AppLovin and Verizon, to tokenized trading of their shares.
- Venues offering third-party-tokenized shares must notify underlying issuers in writing, allowing a written objection to block trading within 30 days.
- The updated OKXICE notice does not identify a final opening lineup, give a launch date, or state if objections changed the timetable.
OKXICE has disclosed objections from nine companies to tokenized trading of their shares, up from four in its Oct. 8 notice. Its Oct. 15 update names CoreWeave, Broadcom, AppLovin and Verizon among the objecting issuers.
OKXICE Adds Five Companies to Its Objection List
The Oct. 4 notice identified Cerebras Systems alone. The Oct. 8 version added AppLovin, Applied Digital and Rocket Lab.
The Oct. 15 update adds CoreWeave, Verizon, Applied Optoelectronics, Broadcom and UnitedHealth Group. The notice does not reproduce their letters or explain why each company objected.
All eight companies added since Oct. 4 appeared in the Oct. 4 document’s proposed stock lineup. The objections concern third-party-tokenized versions of the companies’ shares on OKXICE, rather than trading in their ordinary shares on existing stock exchanges.
SEC Gives Issuers 30 Days to Object
The Securities and Exchange Commission (SEC) granted temporary, conditional relief on Sept. 17 for qualifying venues trading tokenized stocks through automated liquidity pools. Certain liquidity providers also receive relief from being treated as securities dealers.
Before offering shares tokenized by an unaffiliated third party, a venue must notify the underlying issuer in writing. Trading cannot begin until at least 30 calendar days after the issuer receives that notice.
A written objection delivered on or before the 30th calendar day prevents the venue from offering the affected tokenized stock under the exemption. The venue must disclose the objection in an updated public notice within five business days.
SEC Chairman Paul Atkins described the protection for tokenized securities venues (TSVs) when the framework was announced:
“Issuers must have the opportunity to object and prevent their security from trading on a TSV.”
OKXICE Retains General Wording on Eligible Stocks
The Oct. 4 document named individual stocks it planned to make available, including shares in technology, healthcare and consumer companies. The Oct. 8 version replaced that list with a general statement covering stocks tokenized by unaffiliated third parties. The Oct. 15 version retains that wording.
The updated notice does not identify a final opening lineup or give a launch date. It also does not say whether the objections have changed the timetable. The SEC separately requires venues to publish their initial operating notice at least 30 calendar days before beginning operations.
The issuer-specific waiting period runs from receipt of notice. The date on a venue’s public document does not by itself establish when trading in each stock can begin.
OKXICE Plans Share-Backed Tokens on XLayer
OKXICE is a Texas joint venture owned equally by Intercontinental Exchange Holdings and OKC USA Holding. Its planned venue uses permissioned liquidity pools on the XLayer blockchain, with tokenized stocks paired against supported stablecoins.
Under its described model, an unaffiliated tokenizer holds underlying shares one-for-one through a registered broker-dealer. Tokens represent entitlements to those shares. The SEC framework requires token holders to receive equivalent shareholder rights, including dividends and voting rights.
OKXICE also states that it is not registered with the SEC for the activities covered by the exemption.
The objections restrict particular listings under that framework. They do not establish a general prohibition on tokenized stocks or a ban on other companies using the exemption.
