Dozens of Publicly Traded Companies Object to OKX and ICE Share Tokenization Plan
Published
A significant number of publicly traded companies have formally objected to a plan by OKX and Intercontinental Exchange (ICE) to tokenize their shares, with 62 firms either objecting or preemptively withdrawing their shares from the initiative as of November 3.
MissedBlock Desk · 3 min read
A significant number of publicly traded companies have formally objected to a plan by OKX and Intercontinental Exchange (ICE) to tokenize their shares, with 62 firms either objecting or preemptively withdrawing their shares from the initiative as of November 3.
OKX and ICE had reportedly sought approval from the Securities and Exchange Commission (SEC) to trade tokenized shares of at least 63 companies. The SEC introduced a temporary innovation exemption in September that allows for the secondary trading of tokenized U.S. stocks, creating a pathway for such initiatives, though many companies are expressing reservations.
Concerns cited by objecting companies include potential impacts on share prices and liquidity, shareholder rights, market transparency, and OKX’s offshore domicile. Initial objections were filed by November 2, with 50 companies, including JPMorgan, Goldman Sachs, Coca-Cola, and Walmart, expressing their dissent.
By November 3, the number of objecting companies had risen to 56, with prominent firms such as Tesla, SpaceX, Amazon, SoFi Technologies, and Netflix joining the list. GE Vernova, Apple, and Home Depot also subsequently objected. Notably, six of the “magnificent seven” companies have raised objections.
In total, 54 firms are refusing to participate, with an additional eight companies having preemptively withdrawn, bringing the total to 62 firms not proceeding with the OKX and ICE tokenization.
Figure CEO Mike Cagney has publicly questioned the suitability of the OKX/ICE venue, arguing that its automated market maker execution mechanism may not be as effective as a traditional limit order book. Cagney suggested that for equities to truly exist on-chain, they should be natively issued by the company and available for borrowing and lending within decentralized finance (DeFi) protocols.
Meanwhile, Morgan Stanley has pursued a different tokenization strategy, tokenizing U.S. stocks and Treasuries through the Depository Trust and Clearing Corporation (DTCC). This initiative went live on October 28, involving 34 securities, indicating that established financial entities are exploring alternative, potentially more regulated, pathways for tokenizing traditional assets.
The widespread objections highlight significant concerns among established companies regarding the practical and regulatory challenges of tokenizing their shares. The outcome of OKX and ICE’s plan remains uncertain, as does the long-term impact of tokenization on equity markets and the broader regulatory landscape.
Why This Matters
The materials describe a narrow update: A significant number of companies have formally objected to a plan by OKX and ICE to tokenize their shares, citing concerns about share price, liquidity, shareholder rights, market transparency, and the offshore domicile of OKX. The ultimate outcome of OKX and ICE’s tokenization plan.
Broader Context
Source materials place the factual news in this context: The SEC introduced a temporary innovation exemption in September that allowed some platforms to offer secondary trading of tokenized US stocks via liquidity pools and permissioned market makers.