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Thirty-three publicly traded companies have opposed the tokenization of their shares on the OKX-ICE platform, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE).
On Monday, October 26, companies including Intel, IBM, Oracle, and IonQ announced their unwillingness to allow third parties to tokenize their securities. On October 27, the list expanded to include JPMorgan Chase, Advanced Micro Devices, Applied Materials, Coca-Cola, Adobe, Dell Technologies, and SanDisk. Later, technology firms Microsoft, Alphabet, Broadcom, and Qualcomm joined, along with banks Goldman Sachs and Wells Fargo.
Initially, OKX-ICE planned to trade 63 exchange tickers representing 62 companies on its Tokenized Securities Venue (TSV). Of the 33 companies that declared their objection, 30 were present in the original list. Thus, nearly half of the companies have already announced their refusal.
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The refusal does not necessarily mean that these issuers will never choose to issue tokenized securities themselves in the future.
The ability to opt out of share tokenization was made possible by a temporary “Innovation Exemption” announced by the U.S. Securities and Exchange Commission (SEC) in September. This exemption creates a special regime under which a platform planning to offer tokenized versions of an issuer’s shares must notify the company. The issuer has 30 days from the receipt of the notification to submit a written objection, after which the platform cannot tokenize those shares for trading.
In September, the SEC also exempted crypto platforms from the requirement to register as exchanges for five years. The new Tokenized Securities Venue status allows trading of tokenized shares through automated market makers and liquidity pools without a license.
