OKX and ICE seek SEC approval for 24/7 tokenized stock trading

OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, have taken a significant step toward offering 24/7 trading of tokenized stocks. The joint venture, OKXICE, filed a notice with the U.S. Securities and Exchange Commission (SEC) on October 4, outlining plans to provide continuous trading for more than 60 U.S.-listed companies. The proposal aims to serve both retail and institutional investors, leveraging the SEC’s Innovation Exemption, which was issued on September 17.

The tokenized stocks would represent traditional equities through digital records on a blockchain, ensuring equivalent shareholder rights such as voting and dividends. The SEC exemption allows for automated market makers without requiring registration as a national securities exchange. However, issuers have the opportunity to object within 30 days, and trading would halt if the primary exchange suspends the underlying stock.

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 proposed platform would operate through permissioned liquidity pools on XLayer using Uniswap v4, with trading restricted to approved wallets and verified participants.

The filing adds to the growing market of tokenized stocks, which includes platforms like Ondo and Bitget. Ondo’s tokenized stocks, available on Bitget, do not confer direct ownership or voting rights, unlike OKXICE’s model, which is required to match the rights of the underlying shares. As of October 5, RWA.xyz listed $3.2 billion in distributed value across its tokenized equity category, marking a 10.33% increase over the preceding 30 days.