OKXICE moves ahead with tokenized stocks as blue chips push back

Crypto exchange OKX and New York Stock Exchange parent Intercontinental Exchange (ICE) are set to launch tokenized stock trading on Nov. 23, despite objections from 67 companies to having their shares listed and warnings from Nasdaq that trading across disconnected platforms could fragment liquidity.

The venture, known as OKXICE, will operate under the US Securities and Exchange Commission’s temporary Innovation Exemption and offer eligible US customers round-the-clock trading. Under the exemption, venues must give companies a chance to object before listing shares tokenized by an unaffiliated third party. JPMorgan Chase, McDonald’s, SpaceX and Coca-Cola were among the companies that objected. 

Tokenized stocks are blockchain-based tokens that represent company shares or track their price. The rights they carry depend on how they are structured. The distributed value of tokenized stocks and ETFs reached $3.88 billion on Nov. 11, up 13.4% over 30 days. 

In comments to Cointelegraph, former New York governor and OKXICE co-chair Andrew Cuomo said investors would have “the same rights, protections and ownership that come with the underlying shares.” 

OKX expects the venue to list more than 70 assets, including 59 exchange-traded funds (ETFs) and tokenized shares of Coinbase, Circle, BitGo, Robinhood and Strategy. The lineup also includes Strategy’s preferred shares.