OKX and NYSE Parent Plan 247 Tokenized Stock Trading Platform
The OKX exchange and the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), have taken a significant step toward bringing the U.S. stock market into a 24/7 model similar to cryptocurrencies. Their joint venture, OKXICE, has notified the Securities and Exchange Commission (SEC) about plans to launch a platform for continuous trading of tokenized versions of over 60 U.S. stocks.
The platform will allow investors to trade tokenized stocks around the clock, using stablecoins like USDC, USDT, and USDG as trading pairs. The list of potential assets includes major companies such as Nvidia, Tesla, Apple, Microsoft, Amazon, and crypto-related firms like Coinbase, Circle, Strategy, and Robinhood. Notably, the SpaceX, Elon Musk's privately held company, is also on the list, despite not being publicly traded on traditional exchanges.
The initiative is being introduced under a new regulatory exemption created by the SEC in September. This temporary rule allows platforms using distributed ledger technology to operate markets for tokenized stocks without needing to register as traditional exchanges, provided they meet specific conditions. Andrew Cuomo, ex-governor of New York and current co-president of OKXICE, described the project as a move toward a 'truly global and 24/7 Wall Street.'
This collaboration follows a partnership announced in March, where ICE invested in OKX, valuing the crypto exchange at $25 billion. The joint venture aims to integrate their infrastructures, offering OKX’s clients access to ICE’s products, including regulated futures and tokenized stocks from the NYSE. The goal is to develop on-chain infrastructure for trading, settlement, custody, and capital formation, leveraging blockchain technology to enable continuous trading and faster settlements.
The proposal is part of a broader trend among major exchanges exploring extended trading hours and blockchain integration. While the SEC’s exemption provides a regulatory pathway, it also raises questions about investor rights, custody, and the relationship between tokens and the assets they represent. For instance, Cerebras Systems has objected to the potential tokenization of its shares, highlighting some of the challenges ahead.