OKX and ICE Launch 247 Blockchain Market for Tokenized Stocks
OKX and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, are launching a blockchain-based market for tokenized U.S. stocks. The platform, which will operate 24/7, will initially offer more than 60 securities, including Nvidia (NVDA), Tesla (TSLA), Apple (APPL), Microsoft (MSFT), and Amazon (AMZN). Each tokenized stock will be backed one-for-one by an underlying share, held by a registered broker-dealer, ensuring investors receive economic and shareholder rights, such as dividends and voting privileges.
The new market will use blockchain-based liquidity pools, known as automated market makers (AMMs), where investors trade against pools of tokenized stocks and stablecoins like USDC, USDT, and USDG. Unlike traditional exchanges, prices will be determined by buying and selling within these pools, not by the latest Nasdaq or NYSE prices. The platform will also require identity and anti-money-laundering checks for all traders, ensuring regulatory compliance.
However, the success of this initiative is uncertain. TD Securities analysts note limited near-term relevance for institutional investors, citing efficient existing access to listed stocks and potential regulatory shifts. Some companies, like Cerebras, have already objected to their inclusion in the platform. Additionally, the SEC's five-year relief period could deter large financial firms from investing in the platform, as the regulatory framework remains temporary.
The real test will be whether enough investors and trading firms participate to keep prices aligned with traditional markets, especially during off-hours when U.S. exchanges are closed. If successful, the platform could revolutionize stock trading by enabling 24/7 transactions and demonstrating the viability of tokenized equities.