OKX-ICE Taps Uniswap v4 for Tokenized Stock Trading Venue
The OKX-ICE joint venture, a partnership between OKX and Intercontinental Exchange (ICE), is planning to launch a tokenized stock trading venue using Uniswap v4 infrastructure. The venue, which will offer blockchain-based versions of over 63 U.S.-listed stocks, will use a permissioned on-chain trading system. According to Uniswap founder Hayden Adams, the Uniswap v4 hook will suit the market structure proposed for the tokenized securities venue.
The proposed venue will operate on XLayer, with tokenized stocks traded through Uniswap v4 automated market maker liquidity pools. Each tokenized stock will be paired with one of three payment stablecoins: USDC, USDG, or USDT. The OKXICE notice states that only wallets holding a valid, non-transferable soulbound token (SBT) issued by OKXICE will be allowed to trade or provide liquidity.
The Uniswap v4 hook will enforce access restrictions for tokenized-stock pools and verify whether a wallet holds a valid SBT before each trade and liquidity action. The hook will not change the pricing formula, which will use Uniswap v4's constant-product automated market maker pricing formula.
The OKXICE proposal follows the SEC's temporary exemption for certain distributed-ledger trading venues involving tokenized NMS stocks. The venue is not registered with the SEC for activities performed under the exemption. Trading may be halted when the underlying stock is halted or when other specified conditions are met.