OKX Moves Ahead with Tokenized US Stocks Under SEC Exemption
OKX has filed with the U.S. Securities and Exchange Commission (SEC) to trade tokenized U.S. stocks, marking a significant move into this emerging market. The company plans to start with 63 companies listed on the New York Stock Exchange (NYSE) under a five-year exemption for on-chain trading that the SEC recently opened. However, the venture faces volume caps and a 30-day issuer objection window, which could limit its first-mover advantage.
The filing was submitted through OKXICE LLC, a joint venture with NYSE owner Intercontinental Exchange (ICE). Bloomberg reported that ICE’s investment valued the exchange at $25 billion. In September, tokenized stocks accounted for an 11% average share of decentralized exchange (DEX) trading. The exemption caps each venue at 75 top-tier stocks, typically S&P 500 and Russell 1000 members.
OKX’s initial 63 stock listings would nearly fill the 75-symbol ceiling if they are top-tier. Each token’s trading cannot exceed 0.25% of the stock’s prior-month volume, and a repeat breach forces a three-month pause. Issuers also have the right to block a listing by objecting within 30 days, adding another layer of complexity.
Rivals like Coinbase, which launched tokenized U.S. stocks for eligible non-U.S. customers in August, face the same limits. The exemption expires in September 2031 and remains an agency order, not legislation. Former New York governor Andrew Cuomo, co-chair of OKXICE, warned that agency rules are fragile and could be scrutinized by a new Congress. However, the SEC has asked whether to make the exemptions permanent.
Meanwhile, NYSE has struck an early-stage agreement with Blockchain.com for its own digital venue, which claims 44 million accounts. The success of tokenized stocks may ultimately hinge on user reach, issuer consent, and future congressional actions, rather than just filing dates.