JPMorgan, Coca-Cola Among 7 More Companies Objecting to OKX-ICE Tokenized Stocks
In brief
- JPMorgan Chase, Coca-Cola, Dell, AMD, Adobe, Applied Materials, and Sandisk objected to trading of their shares on OKXICE TSV, according to its Oct. 27 notice.
- That brings the total to 33 objecting issuers, up from nine on Oct. 15.
- Under the SEC’s innovation exemption, a timely objection bars the venue from listing a third-party tokenized version of a company’s stock, though other venues aren’t affected.
The pushback against OKX and ICE’s tokenized stock venue now includes the biggest bank in the U.S.
JPMorgan Chase, Coca-Cola, and Dell Technologies are among seven companies added to OKXICE TSV’s list of objecting issuers in a notice dated Tuesday. Advanced Micro Devices, Adobe, Applied Materials, and Sandisk round out the group. The additions bring the total to 33, up from 26 a day earlier.
The list has grown quickly. It stood at nine on Oct. 15, 16 on Oct. 19, and 22 on Oct. 23. Earlier objectors include Microsoft, Alphabet, Goldman Sachs, Wells Fargo, Intel, and Oracle. JPMorgan is the third major bank to object, after Goldman and Wells Fargo.
Under the SEC’s innovation exemption, which the agency unveiled in September after the Clarity Act stalled in the Senate, a venue must notify a company before offering a version of its shares tokenized by an unaffiliated third party. If the company objects in writing within 30 days, the venue can’t make that stock available for trading, according to the SEC’s order. The objection applies only to that venue. The notices haven’t disclosed the companies’ reasons.
→OKXICE’s original Oct. 4 notice proposed 63 tokenized stocks from 62 companies, and several objectors, including Wells Fargo and Arm, weren’t on that initial roster. Some of the biggest names, including Nvidia, Tesla, Apple, and Amazon, haven’t objected so far.
OKXICE TSV, a 50-50 joint venture between NYSE owner Intercontinental Exchange and OKX’s U.S. holding company, plans to let approved users trade tokenized U.S. stocks 24/7. Trades would run through permissioned Uniswap v4 pools on OKX’s XLayer blockchain, paired with stablecoins such as USDC. Earlier notices warned that it’s uncertain whether tokenized shares in self-custodied wallets would be covered by the Securities Investor Protection Corporation if the tokenizer’s broker-dealer failed.
OKX and ICE first teamed up on tokenized securities earlier this year before announcing the 24/7 venue this month. Nasdaq, which won SEC approval for its own tokenized securities pilot, has said it will opt its shares out of the exemption.
