IBM (NYSE: IBM), Oracle (NYSE: ORCL), Intel (NASDAQ: INTC) and IonQ (NYSE: IONQ) have become the latest large companies to opt out of the OKX-ICE plan to offer tokenized versions of their stocks on its trading venture, after informing regulators of their decision.
With the latest objections, the list of firms to reject the plan to move their stocks onchain has now grown to 26, up from 22 before Eleanor Terrett’s October 27 report.
Firms are objecting to the tokenization of their stocks
Per Terrett’s X post, quantum computing firm IonQ joined IBM, Oracle and Intel have all informed the SEC of their objection to OKX and Intercontinental Exchange offering tokenized versions of their shares, using the SEC’s innovation exemption.
Wells Fargo, Arm Holdings, Intuit, Microsoft and Alphabet were among the batch of October 23 objectors when the list was at 22. At the time, 16 of the firms to object traded on Nasdaq, while the remaining six were on the NYSE.
Cryptopolitan also reported on objections by Qualcomm, Cisco Systems, Broadcom, CoreWeave and Goldman Sachs.
OKXICE is a joint venture between ICE, New York Stock Exchange’s parent company and the OKX crypto exchange. The original pitch listed more than 60 US-listed stocks that could be listed on the platform.
What does an objection mean?
Before a venue can list a third-party tokenized version of a stock, it has to send written notice to the issuer, which then has 30 calendar days to object in writing. Notably, while these firms’ objections stop OKXICE from offering their third-party tokenized shares, companies can still build their own blockchain-based securities.
The SEC’s September 17 order gives venues the option of offering tokenized versions of any NYSE or Nasdaq-listed stock under an exemption that runs through September 17, 2031.
Nasdaq’s FAQ on the order describes limits of 75 Tier 1 symbols and 250 Tier 2 symbols per venue, each tied to a slice of prior-month average daily volume.
Issuers want changes to the SEC’s objection system
In an October 19 comment letter, the Securities Industry and Financial Markets Association made three suggestions to the SEC:
- To flip the system to affirmative issuer consent
- To set up a central objection system
- To stretch the deadline to 90 days, up from the 30-day window
SEC Chairman Paul Atkins said when he announced the order that it would allow trading in a “permissioned environment” while the commission weighs further action.
The tokenized stock market, which used to be a niche sector, has exploded past $4.4 billion across 36 issuers. Cryptopolitan reported that tokenized stocks deposited in DeFi protocols have gone from about $11.8 million one year ago to crossing the $300 million mark as of this month.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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