Only six crypto companies on OKXICE’s list have not blocked the venue from tokenizing their shares, as 67 companies have now objected.
OKXICE’s original list had 62 companies, but 67 companies have objected. 56 of the original 62 have objected as of this report.
Which companies have not objected to OKXICE’s stock tokens?
OKXICE is a joint venture between crypto exchange OKX and Intercontinental Exchange (NYSE: ICE), the owner of the New York Stock Exchange.
Out of all the companies that OKXICE listed, saying it planned to make token versions of their stocks, only six have not objected . Those companies include Strategy (NASDAQ: MSTR), Robinhood (NASDAQ: HOOD), Coinbase (NASDAQ: COIN), Circle (NYSE: CRCL), BitGo (NYSE: BTGO) and Securitize. All six are crypto businesses.
When OKXICE filed its notice on October 4, the list contained more than 60 stocks of crypto firms with big names like Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). Many of those companies have since objected.
Broadcom (NASDAQ: AVGO), Verizon (NYSE: VZ) and UnitedHealth Group (NYSE: UNH) were the first to object.
Then by October 28 there were 38 objectors, including Walmart (NASDAQ: WMT). The number of companies that had objected reached 50 on October 30, with Nvidia, Costco (NASDAQ: COST) and Nike (NYSE: NKE) among them.
A notice dated November 2 raised it to 56, adding Tesla, Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) to the list of objectors.
Cryptopolitan reported that 59 companies had objected after OKXICE’s November 3 notice, when Apple, Home Depot (NYSE: HD) and GE Vernova (NYSE: GEV) opted out.
On Thursday, Nebius (NASDAQ: NBIS), Boeing (NYSE: BA) and ServiceNow (NYSE: NOW) reportedly objected, bringing the total to 62.
On Friday, five more companies pushed it to 67: Palantir (NASDAQ: PLTR), S&P Global (NYSE: SPGI), KLA (NASDAQ: KLAC), Super Micro (NASDAQ: SMCI) and Meta (NASDAQ: META).
Of the 67 objectors, 56 were on OKXICE’s original list of 62 companies . The rest, including Cerebras and Nebius, were never on it.
OKXICE plans to offer trading around the clock. Each token would be paired with USDC, USDG or USDT in permissioned liquidity pools on the X Layer network.
Co-chair Andrew Cuomo, the former New York governor, called the project a first step. He told the Wall Street Journal that he expects companies to be wary of tokenizing their stock.
Why can companies block their stock from being tokenized?
The right for companies to object to their stock being tokenized comes from an SEC “innovation exemption,” a five-year order issued on September 17 . It lets a tokenized securities venue trade token versions of listed stocks without registering as an exchange.
When a third party, rather than the company, wants to tokenize a stock, the venue must notify the company at least 30 calendar days before trading starts. The company then has 30 days to file a written objection.
Silence counts as consent. An objection only applies to the venue that sent the notice, so each new platform restarts the clock. A company can still issue its own blockchain-based securities.
A spokeswoman for Applied Optoelectronics (NASDAQ: AAOI) explained that the reason for the company’s refusal is that it could not tell how tokens would affect its share price, trading volume, or volatility. She also worried that investors would think the company had sponsored the token.
Nasdaq (NASDAQ: NDAQ), which was not on OKXICE’s list, said it would keep its own shares off venues that do not show real-time best prices or report to the consolidated tape.
Robinhood CEO Vlad Tenev has pushed back on the idea of a company veto. He argued in September that a token that does not change shareholder rights, company duties, or the official stock record should not need the company’s approval. His comments followed criticism from AMC Entertainment (NYSE: AMC) CEO Adam Aron over Robinhood’s stock tokens.
Amidst the objections, Securitize recently launched tokenized U.S. stocks, and those tokens are expected to trade on OKXICE.
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