The wave of resistance to OKXICE’s stock tokenization is growing and raises serious questions for investors.
As of November 1, 2024, 50 US companies, including Nvidia, Nike, and Costco, had officially blocked the tokenization of their shares on OKXICE’s XLayer blockchain. This number keeps rising: only 9 companies had objected in mid-October. Now, 69% of the companies targeted prefer to stay out of this new market.
Why the widespread rejection? Companies like Nvidia and Nike have not publicly explained their reasons. Several explanations have been put forward:
Risks of losing control over distribution and brand image
Regulatory uncertainty surrounding 24/7 blockchain trading
Lack of transparency around prices and trading volumes
The main sticking point remains the lack of real-time reporting, which is required in traditional markets. Nasdaq has voiced its opposition, emphasizing that OKXICE’s platform guarantees neither best execution nor consolidated reporting. OKXICE is not subject to Regulation NMS, raising concerns about execution quality and brokers’ compliance with the rules.
The 30-day regulatory response period is drawing to a close. Of the 62 companies targeted, only Apple, Tesla, and Amazon have not expressed any known objections. Under the SEC’s “Innovation Exemption” (September 2024), their silence could allow their shares to be tokenized by the deadline, but their position remains unclear.
This situation highlights the divide between blockchain innovation and traditional stock market transparency requirements. The industry is closely watching this full-scale test of “permissionless” tokenization.
Do you think large companies will eventually accept the tokenization of their shares?