Nvidia and Nike Among 50 Companies Objecting to OKXICE Stock Tokens

Nvidia and Nike have joined the companies objecting to tokenized versions of their shares trading on OKXICE. The planned venue’s Oct. 30 notice lists 50 objecting issuers.

A swift objection stops the platform from offering the company’s third-party stock tokens under its current U.S. regulatory exemption. More objections mean fewer options of shares available through the venue for next users.

Costco, Micron and Reddit Also Join the Objection List

Costco, Micron and Reddit also appear in the updated list, alongside Microsoft, Alphabet, Goldman Sachs and JPMorgan Chase. The objections now span major technology companies, banks, retailers and other businesses.

The Oct. 15 notice identified nine objecting issuers, including CoreWeave, Verizon and Broadcom. The objections concern the proposed third-party stock tokens on OKXICE. The companies’ ordinary share listings on existing stock exchanges are unaffected.

Applied Optoelectronics Cites Pricing Risks and Investor Confusion

Applied Optoelectronics, one of the original nine objectors, said it was unsure how tokenization would affect its stock price, liquidity, and volatility. It also worried that investors would wrongly assume it had sponsored or endorsed the third-party tokens.

The company explained its position:

“At this stage, we don’t see a clear benefit to AOI or our shareholders that justifies these uncertainties.”

Separately, exchange operator Nasdaq has criticized the general regulatory framework, warning that it could make prices less transparent and scatter liquidity across venues. It also raised the risk of investors blaming companies for poor outcomes on platforms they do not control. Nasdaq favors issuer-led tokenization that preserves existing market safeguards.

SEC Rules Give Issuers 30 Days to Block Listings

The U.S. Securities and Exchange Commission (SEC) introduced temporary, conditional relief for qualifying tokenized securities venues, known as TSVs, on Sept. 17. It allows them to operate without registering as national securities exchanges, provided they meet the exemption’s conditions.

Before offering shares tokenized by an unaffiliated third party, a venue must notify the underlying company in writing. Trading cannot begin until at least 30 calendar days after the company receives that notice.

If the company objects in writing within that window, the venue cannot offer the affected stock token under the exemption. It must update its public notice to disclose the objection within five business days.

SEC Chair Paul Atkins described the issuer protection when the framework was announced:

“Issuers must have the opportunity to object and prevent their security from trading on a TSV.”

OKXICE Plans Round-the-Clock Trading on XLayer

OKXICE is owned equally by Intercontinental Exchange Holdings and OKX affiliate OKC USA Holding. Its planned platform would trade stock tokens against supported stablecoins through automated liquidity pools on XLayer, operating 24 hours a day, seven days a week.

Access would require identity and sanctions checks, an account with the tokenization provider and an approved wallet. A nontransferable access token would let that wallet trade on the platform.

Each stock token would be backed by one underlying share held through a registered broker-dealer. OKXICE would review independent reports on that backing and the arrangements for passing shareholder rights to token holders.

Those rights include dividends and voting rights equivalent to the underlying share class. The tokenization provider would distribute payments and proxy materials and handle adjustments for events such as stock splits and mergers.