Wall Street’s ambition to bring stocks onto blockchain networks is facing resistance from some of the companies whose shares are at stake. Nine major firms, including Verizon, Broadcom, and UnitedHealth Group, have objected to their shares being listed on OKXICE TSV, a new tokenized stock platform. The platform is a joint venture between crypto exchange OKX and Intercontinental Exchange, the owner of the NYSE. Other objecting companies include Cerebras Systems, AppLovin, and Rocket Lab.
The reasons behind these objections remain unclear, as does whether they will prevent the shares from being listed. Meanwhile, Nasdaq has also distanced itself from the platform, citing concerns over real-time price visibility and trade reporting requirements. This is notable given that Nasdaq received SEC approval earlier this year for its own tokenized securities pilot program.
OKXICE TSV is the first major test of the SEC’s innovation exemption, which allows qualifying platforms to trade tokenized U.S. stocks without registering as exchanges. The venue plans to operate 24/7 using Uniswap v4 liquidity pools on OKX’s XLayer blockchain, with trades settled in stablecoins like USDC and USDT. The tokens are created by third-party tokenizers, not the companies themselves, and are supposed to mirror the dividends and voting rights of traditional shares.
However, the platform comes with significant limitations. It is not registered with the SEC, not subject to Regulation NMS rules ensuring the best prices for investors, and does not guarantee fair access to all participants. Trading is also capped at a small fraction of each stock’s normal volume, and smart contract upgrades can be made without prior notice. Despite these concerns, the International Monetary Fund has identified real demand for tokenized stocks, particularly outside traditional market hours, though it warns of volatility and illiquidity.