OKX and ICE Seek SEC Approval for 24/7 Tokenized Stock Trading

OKX and Intercontinental Exchange (ICE) have taken a significant step toward enabling 24/7 trading of tokenized stocks by filing a notice with the Securities and Exchange Commission (SEC). The proposal, submitted on October 4, covers more than 60 US-listed companies and aims to provide continuous trading for both retail and institutional investors. The venture, known as OKXICE, operates under the SEC's Innovation Exemption, which requires equivalent shareholder rights and allows issuers to object to the tokenization of their shares.

The platform would use permissioned liquidity pools on XLayer with Uniswap v4, trading stock tokens against stablecoins like USDC, USDG, or USDT. Participants would need to undergo identity verification and other checks. The SEC exemption permits automated market makers without requiring registration as a national securities exchange, but the launch remains subject to conditions, including issuer objections and shareholder protections.

ICE valued OKX at $25 billion in March before the companies formed their equally owned venture in June. The partnership combines ICE's exchange operations and market technology with OKX's blockchain infrastructure and distribution network. The filing also highlights that tokenized stocks must preserve voting and dividend rights, with a registered broker-dealer holding the underlying shares and blockchain records tracking transfers.

The proposal adds to existing models in the market, such as those offered by Bitget and Ondo. While Bitget's tokenized stocks provide exposure to prices and reinvested dividends, they do not confer direct ownership or voting rights. OKXICE's model, however, aligns with the SEC's requirement to match the rights of the underlying shares. The public notice lists Cerebras Systems as one of the issuers under the objection section.