exchange ·
Regulators allow Walmart, Eli Lilly, Cigna to block stock on OKX-ICE venue
The planned OKX-ICE tokenized stock venue has seen an increase in corporate pushback.
Walmart, Eli Lilly, Cigna, Carnival, and Arcos Dorados have formally objected to their shares being traded on the platform.
This latest submission brings the total number of objecting entities to 38. This figure is higher than the 33 reported the preceding day, following additions such as JPMorgan Chase, Coca-Cola, and Dell.
The growing resistance spans various sectors, extending beyond technology and finance into retail, healthcare, and travel. Arcos Dorados, the largest McDonald’s franchisee in Latin America, joined McDonald’s, which had previously lodged an objection this month.
In the healthcare sphere, Eli Lilly and Cigna have joined UnitedHealth Group and Moderna on the list of objectors.
These objections hold regulatory significance. Pursuant to the SEC’s innovation exemption, which the agency introduced in September after the Clarity Act stalled in the Senate, a venue must notify a company before offering a tokenized version of its stock by an unaffiliated third party.
If a company submits a written objection within 30 days, the SEC’s order dictates the venue cannot facilitate trading of that stock. This objection is specific to that venue, and the notices do not detail the companies' justifications.
OKXICE TSV, a joint venture between Intercontinental Exchange (NYSE owner) and OKX’s U.S. holding company, intends to allow approved users to trade tokenized U.S. stocks continuously.
This venue is structured to operate trades through permissioned Uniswap v4 pools on OKX’s XLayer blockchain, utilizing stablecoins like USDC.
The SEC’s order limits the venue to 75 of the largest, most liquid stocks, restricting trading to 0.25% of each stock’s average daily volume, with a 2.5% cap for up to 250 other stocks.
This trend reflects increasing scrutiny from regulated entities regarding the introduction of digital asset representations of traditional securities.
Why it matters
This growing resistance highlights significant regulatory hurdles for tokenized securities platforms. The SEC's exemption grants companies a clear mechanism to halt the listing of their shares on specific venues. Watch to see if this pushback slows the adoption of tokenized stock trading in the US market.
