Nine companies have formally objected to plans by OKXICE to offer tokenized versions of their shares, preventing the proposed trading platform from listing those securities under a new U.S. regulatory exemption.
Summary
- Nine companies have objected to tokenized trading of their shares on OKXICE’s proposed U.S. platform.
- Broadcom, CoreWeave, Verizon and UnitedHealth appear among the companies named in the October 15 notice.
- SEC rules give companies 30 days to reject third-party stock tokenization on a specific trading venue.
- OKXICE plans round-the-clock trading through Uniswap v4 liquidity pools on the XLayer blockchain network.
- The joint venture is owned equally by ICE and an OKX affiliate, according to company disclosures.
In an October 15 notice, OKXICE identified Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom and UnitedHealth Group as companies that had submitted objections.
The objections affect the joint venture’s planned Tokenized Securities Venue (TSV), which intends to offer blockchain-based trading of U.S. stocks around the clock. Under the Securities and Exchange Commission’s September 17 exemption, companies can prevent an unaffiliated third party from offering tokenized versions of their shares on a particular venue.
The notice does not explain why each company objected. It confirms the receipt of nine notices but does not establish that the companies oppose every form of stock tokenization.
OKXICE receives nine objections to tokenized stock trading
The October 15 filing identifies AppLovin, Applied Digital and Rocket Lab alongside technology companies CoreWeave, Broadcom, Applied Optoelectronics and Cerebras Systems. Verizon and UnitedHealth complete the list.
The companies had been considered for trading through OKXICE’s proposed blockchain-based securities platform. Eight appeared on the venue’s original October 4 list of 63 securities, while Cerebras was already recorded as an objecting issuer outside that initial lineup.
A comparison of the venture’s public notices indicates that objections accumulated across successive disclosures. Cerebras appeared in the October 4 notice, followed by AppLovin, Applied Digital and Rocket Lab in the October 8 revision.
By October 15, CoreWeave, Verizon, Applied Optoelectronics, Broadcom and UnitedHealth had joined the disclosed group. The filings do not establish the exact dates on which each company delivered its objection.
The original 63-stock proposal was previously covered by crypto.news in its report on OKXICE’s tokenized stock application. The October 5 coverage described the venture’s plans to offer U.S. equities through a platform operating under the SEC’s new exemption.
A separate report by Barron’s said the objections followed concerns among companies about stock prices, market liquidity and investor understanding of tokenized shares.
Applied Optoelectronics reportedly raised questions about potential price volatility and whether investors might mistakenly believe the company supported the proposed tokens. Those concerns have not been presented as a joint statement by all nine companies. OKXICE’s official notice records their objections without describing the arguments submitted by individual issuers.
SEC rules allow companies to block stock tokens
The SEC’s September 17 order introduced temporary exemptions allowing qualifying venues to offer certain tokenized U.S. stocks through automated market makers.
Under the framework, a venue must notify a company before offering tokenized shares created by an unaffiliated third party. The venue must then wait at least 30 calendar days from the date the company receives that notice.
A written objection submitted within the permitted period prevents the venue from offering the affected tokenized stock. The operator must disclose the objection publicly within five business days. The restriction applies to the venue receiving the objection. It does not automatically prohibit the company’s shares from being tokenized through another eligible arrangement.
The SEC’s exemption remains subject to several conditions, including restrictions on eligible securities, trading volumes, customer access and shareholder rights.
Under the order, token holders must receive rights equivalent to those attached to traditional shares of the same class. These include dividends, voting rights and claims on remaining corporate assets during liquidation.
The requirements were examined in earlier tokenized stock exemption proposals, including plans by Perpetuals.com to offer U.S. equities while preserving investors’ ownership rights.
The regulator’s framework expires on September 17, 2031, unless the SEC changes or replaces the arrangements. Qualifying platforms remain responsible for meeting the exemption’s conditions throughout their operations.
OKXICE plans 24-hour stock trading on XLayer
OKXICE is a Texas-based joint venture owned equally by Intercontinental Exchange Holdings and OKC USA Holding, an OKX-affiliated company. Its proposed platform would use automated liquidity pools built with Uniswap v4 on XLayer, a blockchain associated with the OKX ecosystem.
According to the October 15 notice, customers would trade tokenized securities against supported payment stablecoins, including USDC, USDG and USDT.
The platform would not operate a conventional exchange order book. Instead, approved participants would interact with liquidity pools through smart contracts that determine execution terms.
Access would require identity verification, sanctions screening and a wallet authorization process. Approved users would receive a nontransferable token confirming permission to interact with the platform’s trading contracts. The venue plans to support retail investors, institutional customers, market makers and liquidity providers. OKXICE would not directly hold customer assets or provide loans.
For securities created by an unaffiliated tokenization provider, the proposal requires a registered broker-dealer to hold one underlying share for each outstanding token.
The arrangement would allow customers to create and redeem eligible stock tokens through the provider, subject to its account requirements.
The notice specifies that tokenized shares must preserve rights associated with the underlying securities, including access to relevant shareholder information and corporate distributions.
OKX and ICE previously announced their tokenization venture in June, naming former New York Governor Andrew Cuomo as a co-chair alongside ICE executive Trabue Bland.
The companies described plans involving tokenized financial products and access to traditional market infrastructure, subject to regulatory requirements.
OKXICE faces trading limits under SEC exemption
Although the exemption permits blockchain-based stock trading, it restricts the number of securities and the volume of transactions permitted on individual venues.
For Tier 1 securities under the U.S. market volatility framework, an eligible venue may offer up to 75 symbols. Trading is limited to 0.25% of the underlying stock’s average daily volume during the preceding month.
Tier 2 securities face a separate limit of 250 symbols and a trading-volume ceiling of 2.5% of the corresponding monthly average.
OKXICE’s initial 63-stock proposal falls below the numerical ceiling for Tier 1 securities. The objections prevent the affected shares from being offered under the current third-party tokenization arrangement.
In October, Robinhood discussed tokenized stock limits under the SEC framework, stating that its existing trading activity could approach the restrictions imposed by the exemption.
The rules require venues to halt tokenized stock trading whenever the underlying securities are suspended on their primary exchanges.
OKXICE’s notice explains that a second or subsequent breach of an applicable trading-volume ceiling would trigger a three-month suspension for the affected tokenized security.
The venture would use external market data to identify stock trading halts and apply restrictions through its smart contracts.
In its October 15 filing, OKXICE stated that it had not registered with the SEC for the activities covered by the exemption. The regulator had not approved the merits or accuracy of the venture’s disclosures.
The SEC requires an operator to publish its notice at least 30 calendar days before beginning operations and report material changes under the specified timetable. OKXICE has not announced a confirmed public trading launch date.
