OKX Seeks SEC Approval for Tokenized NYSE Stocks
OKX has taken a significant step toward bringing tokenized U.S. stocks to investors by filing with the U.S. Securities and Exchange Commission (SEC) through its joint venture, OKXICE. The filing seeks approval to launch a platform offering digital versions of 63 NYSE-listed companies' shares. This move aligns with the SEC's new Innovation Exemption framework, which sets conditions for trading tokenized securities.
The SEC's rules require that tokenized stocks preserve key shareholder rights, including dividends, voting privileges, and claims on residual assets. Issuers of the underlying stocks will receive a 30-day notice period to object before trading can begin. If an issuer objects, the tokenized version of their stock cannot be traded under the exemption.
OKXICE, a 50-50 venture between OKX and Intercontinental Exchange (ICE), plans to start with 63 NYSE-listed stocks. The venture, co-chaired by former New York Governor Andrew Cuomo and ICE executive Trabue Bland, aims to provide a regulated platform for tokenized financial products. However, the platform is still subject to regulatory conditions before it can launch commercially.
OKX already offers tokenized stocks offshore, but these products do not provide direct shareholder rights. The SEC's Innovation Exemption requires that tokenized shares give holders the same rights as conventional shares, including ownership interest and voting rights. This differs significantly from OKX's existing offshore offerings, which do not confer shareholder voting rights.