Tokenized US Stocks Set for 24/7 Trading via OKXICE SEC Filing
OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), has filed with the SEC to launch a tokenized securities platform for 24/7 trading of U.S. stocks. The initial offering will include more than 60 listed companies, featuring well-known names like the Magnificent 7. These stocks will be converted into tokens, traded on the blockchain through a liquidity pool, while retaining traditional benefits such as dividends and voting rights.
The SEC recently issued an order to facilitate the rollout of tokenized stocks, following the collapse of the Clarity Act in Congress. This order loosens requirements for certain trading venues and liquidity providers, exempting them from strict definitions like 'exchange' and 'dealer'. The five-year window allows for market innovation as the Commission evaluates new standards.
Ryan VanGrack, Vice Chair of Coinbase, called tokenization 'the biggest upgrade to financial infrastructure since Wall Street ditched paper for electronic trading'. He emphasized that the innovation exemption is modernizing the financial system.
Tokenization promises faster settlement times, global access, and enhanced efficiency. However, risks include difficulties in auditing third-party token issuers, market fragmentation, price dislocation, and regulatory concerns, particularly with stablecoins like USDC, USDG, and USDT paired with tokenized stocks.