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SEC tokenized stock framework faces issuer pushback as Broadcom, Verizon object to OKX-ICE listing
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- DeepHorus
Broadcom, Verizon and UnitedHealth are among nine companies objecting to having their shares traded on OKXICE’s planned tokenized-stock platform. Eight newly disclosed objections appeared in an October 15 public notice from the OKX-ICE joint venture. The pushback threatens the SEC’s new framework for blockchain-based shares.
OKXICE announced on October 5 that it had notified the SEC of plans to launch the venue. It initially targeted shares of 63 U.S.-listed companies. The platform would operate under the SEC’s five-year Innovation Exemption, issued September 17. Former New York Gov. Andrew Cuomo, the venture’s co-chair, announced the move on X.
The venue would use Uniswap v4 liquidity pools on OKX’s XLayer blockchain. Trades would settle in stablecoins around the clock. Under its model, underlying shares would be held one-for-one against outstanding tokens through a registered broker-dealer. Token holders must receive equivalent rights, including dividends and voting rights.
Nasdaq has separately said it would opt out of having its own shares tokenized. A spokesperson told the Wall Street Journal that Nasdaq does not want its shares trading on a venue that fails to display best prices in real time or report to the consolidated tape. Nasdaq is not among the nine issuers named in OKXICE’s notice.
TD Securities analysts led by Reid Noch found little issuer interest in tokenizing shares outside a small group of crypto-adjacent companies. Several issuers approached the firm with concerns after discovering the framework, having been unaware of it when announced. The analysts called the framework’s reliance on temporary exemptive relief, rather than permanent rules, its largest hurdle. A future commission could reverse the approach.
Uncertainty could limit stocks and discourage institutional investment in tokenized trading infrastructure. Overseas platforms can continue offering synthetic stock products without assuming operational requirements. Issuer resistance may slow OKXICE’s launch and onchain equity adoption.
