7 more companies have objected to having tokenized versions of their shares traded on a planned platform from crypto exchange OKX and Intercontinental Exchange (ICE), bringing the disclosed number of objectors to 16.
Microsoft,
Alphabet,
Goldman Sachs,
Qualcomm,
Caterpillar,
McDonald’s, and
Western Digital
were named in an updated notice dated October 19, joining earlier objectors including
Broadcom,
Verizon, and
United Health Group.
INSTITUTIONAL | Why Major U.S-Listed Companies are Opposing New York Stock Exchange Tokenization Plans
Andrew Cuomo, co-chair of the OKX-ICE joint venture and a former New York Governor, described the objections as a natural response to a new market structure saying companies were expected to take a wait-and-see approach before participating.
The proposed venue would allow around-the-clock trading of on-chain representations of U.S.-listed stocks with tokens backed by underlying shares and trades settled in stablecoins.
INSTITUTIONAL | NYSE and OKX File for 24/7 Tokenised U.S Stock Trading
The objections highlight growing resistance among major companies as the U.S. Securities and Exchange Commission’s 5-year Innovation Exemption opens the door to alternative models for tokenized securities trading. Under the framework, issuers can object to having tokenized versions of their shares traded on a venue.
REALITY CHECK | CFTC Chair Says Markets Must Prepare for ‘Mass Tokenization and 24/7 Trading’ Within ‘the Next Decade’
The latest notices do not disclose the companies’ reasons for opting out. Industry participants have raised questions about
pricing,
investor protections,
custody, and
shareholder rights
as tokenized securities markets develop.
EDITORIAL | Why Accounting and Price Discovery Remain the Biggest Hurdles to Capital Markets Tokenization
Cuomo described the initiative as a limited experiment noting that restrictions on participating companies and trading volumes would constrain its initial scale.
EXPERT OPINION | Tokenization Alone Will Not Fix Illiquid Assets, Say Industry Experts
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