OKXICE faces 26 issuer objections to tokenized stock plans, including Intel, Oracle, IBM

This latest addition brings the total number of issuer objections to 26 for the joint venture preparing to test the SEC’s novel framework for blockchain-based securities trading.

The four firms were named in an updated public notification from OKXICE on Monday, Oct. 26. They are joining earlier objectors, such as Microsoft, Alphabet, Goldman Sachs, Cisco, and Wells Fargo.

This expanding resistance highlights a significant obstacle for OKXICE and the SEC’s new structure for tokenized stock trading: cultivating a market that issuers are willing to participate in.

The SEC’s five-year “Innovation Exemption” permits qualifying venues to test round-the-clock blockchain trading of stocks, though it simultaneously grants public companies the option to block their shares from being offered.

OKXICE initially released its public notice on Oct. 4, detailing plans to utilize Uniswap v4 liquidity pools on OKX’s XLayer blockchain, with transactions settled using stablecoins.

Under the established framework, venues are required to notify issuers and provide them with 30 days to raise an objection before offering tokenized versions of their shares.

The notices have not specified the companies' rationale for objecting, nor what an objection entails regarding a stock's availability on the platform.

This pattern of pushback reflects early issuer apprehension regarding the plans to trade their shares under the SEC’s new guidance.

The proliferation of objections underscores the cautious posture among market participants regarding the implications of the Innovation Exemption.

Why it matters

The growing list of issuer objections highlights significant hurdles for OKXICE and the SEC's new framework. Issuers appear to be exercising caution, seeking more clarity on shareholder protections before fully committing to tokenized trading. This dynamic shows the regulatory environment is still being shaped by industry participation.