Fifty public companies have formally objected to the tokenization of their shares on OKXICE—a collaborative venture between the cryptocurrency exchange OKX and New York Stock Exchange parent Intercontinental Exchange (ICE)—as the platform’s initial 30-day notice period concludes on Tuesday.
An October 30 update from the platform introduced 12 additional objectors, including Nvidia, Costco, Nike, Micron, and Reddit. They join a growing roster that already includes Microsoft, Alphabet, JPMorgan Chase, Goldman Sachs, Walmart, Broadcom, Verizon, and Intel. According to a tally by CoinDesk, 43 of the 62 companies initially targeted for tokenization by OKXICE—approximately 69%—have now submitted objections.
The opposition list has expanded rapidly, moving from nine objectors on October 15 to 16 on October 19, 38 by October 28, and reaching 50 just two days later.
How the opt-out works
These objections are facilitated by the U.S. Securities and Exchange Commission’s five-year “Innovation Exemption,” enacted on September 17. This framework permits tokenized securities venues (TSVs) to trade blockchain-based representations of U.S. equities via automated market makers without requiring registration as standard exchanges. When a third party with no affiliation tokenizes a company’s stock, the platform is required to notify the issuer, giving them a 30-day window to submit a written objection. Failure to respond is interpreted as consent, and the regulatory order provides no mechanism to reverse the decision once the deadline passes.
OKXICE intends to offer round-the-clock trading for tokens backed on a one-to-one basis by actual shares, paired with stablecoins such as USDC within permissioned liquidity pools on the X Layer blockchain developed by OKX.
While the objecting companies have not publicly stated their specific reasons, JPMorgan noted that it maintains a positive outlook on tokenization generally, but prefers a deliberate approach regarding how its equity is represented and traded. Olivia Vande Woude, head of tokenization at Ava Labs, remarked, “Given how easy the opt-out is, the list of objectors is likely to keep growing.”
Nasdaq’s role
Competitive tensions have also surfaced around the initiative. An executive at a company listed on Nasdaq informed Crypto in America that a representative from Nasdaq actively encouraged the firm to opt out, offering a direct call to discuss the rationale. Nasdaq declined to address this specific allegation, though it reaffirmed its stance that TSVs represent a suboptimal route toward asset tokenization.
Nasdaq contends that trading platforms operating outside the National Market System risk fracturing market liquidity while failing to provide real-time best-price visibility and consolidated-tape reporting. In response, Nasdaq is developing its own issuer-focused alternative, the Nasdaq Equity Token, in partnership with Kraken, aiming for a launch in the second quarter of 2027.
Additionally, a full-page advertisement in the Wall Street Journal encouraged chief executives to opt out, featuring the headline “YOUR STOCK. THEIR TOKENS. YOUR PROBLEM.” and including a QR code directing readers to Nasdaq’s FAQ page. Funded by the conservative-leaning nonprofit Common Sense Leadership Fund, the ad prompted a statement from Nasdaq clarifying that it has no ties to the organization and did not finance the campaign.
Andrew Cuomo, OKXICE co-chair and former New York governor, characterized the pushback as a “natural response.”
“We are at the very beginning of the rollout of fundamentally different market structure,” he stated last week.
For background, a tokenized equity consists of a blockchain asset backed directly by a real share held by a third-party custodian. OKXICE enables these instruments to trade 24/7 against stablecoins like USDC. Under the SEC Innovation Exemption, the venue can list these tokens without issuer approval unless the company files an objection within the designated 30-day timeframe.
Frequently Asked Questions
What is OKXICE?
OKXICE is a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, designed to facilitate the trading of tokenized stocks.
Why are companies objecting to the tokenization?
Fifty public companies, including Nvidia, Nike, and Microsoft, have objected within the SEC’s 30-day notice window following the introduction of the SEC’s Innovation Exemption.
How does the SEC’s Innovation Exemption work?
It allows tokenized securities venues to trade blockchain versions of U.S. stocks using automated market makers without registering as traditional exchanges, provided they notify issuers who then have 30 days to opt out.
What role does Nasdaq play in this situation?
Nasdaq has criticized tokenized securities venues for potentially fracturing liquidity and is developing its own issuer-centric Nasdaq Equity Token alongside Kraken for a 2027 release.
