OKX-ICE Tokenization Plan Faces Objections From Dozens of Companies

A complete of 62 publicly traded corporations have objected to having their shares tokenized by OKX and ICE.

The newest are plane maker Boeing, Amsterdam-based AI infrastructure supplier Nebius, and ServiceNow, a serious enterprise software program firm.

Objections to Stock Tokenization Pile Up

Recall that early final month, reviews emerged that crypto buying and selling platform OKX and the Intercontinental Exchange (ICE), the mum or dad firm of the New York Stock Exchange, had sought approval from the SEC to begin buying and selling the tokenized shares of at the very least 63 corporations listed on the NYSE.

This was after the company introduced a brief innovation exemption in September that allowed some platforms to supply secondary buying and selling of tokenized US shares by way of liquidity swimming pools and permissioned market makers.

Some of the businesses earmarked by the OKXICE enterprise included JPMorgan, Goldman Sachs, beverage maker Coca-Cola, and retail big Walmart, and as of November 2, all of them, alongside 46 others, had filed objections towards the plan.

According to journalist Eleanor Terrett, some of the issuers have been worried about how their share costs and liquidity might be affected by tokenization. Others, she defined, had adopted a wait-and-see stance, with points across the rights of shareholders and market transparency, in addition to OKX being domiciled offshore, coming to the fore.

By November 3, the objectors elevated to 56, with Wall Street heavyweights reminiscent of Tesla and sister firm SpaceX, Amazon, SoFi Technologies, and streaming big Netflix additionally saying no to the concept.

It didn’t cease there. Yesterday, Terrett famous that vitality tools maker GE Vernova, Apple, and Home Depot had additionally objected to third-party tokenization of their shares, that means that six members of the group of dominant, high-market-cap tech and development corporations referred to as the “magnificent seven” had stated no.

Today’s bulletins by Nebius, Boeing, and ServiceNow carry the overall quantity of corporations that had initially been within the OKXICE tokenization checklist which have refused to play ball to 54, with one other eight that hadn’t been included preemptively taking themselves out, to make it 62.

Critics Question Whether OKXICE Can Work

When the primary 50 corporations opted out, Figure CEO Mike Cagney questioned the suitability of the OKXICE venue, arguing that it could make execution worse since an automatic market maker, which costs trades from a pool of funds, can’t match orders in the identical means a restrict order e-book would.

“We’re going to need to do greater than this SEC sandbox to get shares on public blockchains,” he wrote on X. “Native fairness on chain, issued by the corporate, obtainable for borrow and mortgage in DeFi. That is the best way.”

Meanwhile, Morgan Stanley has taken one other route, announcing lately that it had tokenized US shares and Treasuries by way of the companies of the Depository Trust and Clearing Corporation (DTCC), which went stay on October 28. It opened with 34 securities, with every token backed 1-to-1 by an asset held in custody.

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