SEC tokenized stock framework faces issuer pushback as Broadcom, Verizon object to OKX-ICE listing

A Nasdaq spokesperson told the Wall Street Journal that the company does not want its shares trading on a venue that does not display best prices in real time or report to the consolidated tape, which aggregates stock-market trading data. Nasdaq is not among the nine issuers named in OKXICE’s notice.

Path to onchain stock trading

OKXICE announced on October 5 that it had notified the U.S. Securities and Exchange Commission of plans to launch the venue, initially targeting shares of 63 U.S.-listed companies. Former New York Gov. Andrew Cuomo, the venture’s co-chair, announced the move on X.

The venue would operate under the SEC’s five-year “Innovation Exemption,” issued September 17, which allows qualifying platforms to trade tokenized U.S. stocks using automated market makers and liquidity pools.

Tokenized stocks are blockchain-based representations of shares. OKXICE plans to operate around the clock using Uniswap v4 liquidity pools on OKX’s XLayer blockchain, with trades settled in stablecoins.

Under the model described in its notice, 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.

Issuer doubts

The issuer pushback echoes findings from TD Securities analysts led by Reid Noch, vice president of U.S. equity market structure.