OKX and ICE Plan 247 Tokenized Stock Trading for US Investors

OKX and Intercontinental Exchange (ICE), the owner of the NYSE, have filed plans with the U.S. Securities and Exchange Commission (SEC) to launch a 24/7 trading platform for tokenized U.S. stocks. The joint venture, OKXICE, aims to bring tokenized stock trading onshore, allowing U.S. investors to participate in a market that has so far been restricted to offshore exchanges. The platform would initially offer tokenized versions of more than 60 companies listed on U.S. stock exchanges.

A tokenized stock is a digital representation of a traditional share that exists on a blockchain, enabling trading outside regular market hours and faster settlement. While tokenized stocks are already available on platforms like OKX, they have been limited to offshore investors. The new venture seeks to introduce this trading model to the U.S. market, with the tokenized stocks carrying the same dividend and voting rights as their traditional counterparts.

The filing comes on the heels of a new SEC rule, known as the “Innovation Exemption,” which allows qualifying venues to trade tokenized U.S. stocks using automated market makers and liquidity pools. This rule, issued on September 17, is temporary and will expire in five years. Companies listed on the platform will have 30 days to object to having their stocks tokenized, which could impact the initial lineup.

The involvement of ICE, a major player in traditional finance, signals a shift towards mainstream adoption of tokenized financial products. Former New York Gov. Andrew Cuomo, co-chair of the venture, announced the filing on X, expressing optimism about the project's potential. However, the launch date remains uncertain, pending regulatory approvals and the objection period.