22 Companies Object to Trading of Their Tokenized Shares on OKX-ICE Platform
Key Facts
The number of companies that have objected to the listing of their shares as digital tokens on the OKX-ICE platform reached 22 as of October 23, according to a regulatory document reviewed by Reuters. The news agency said 6 additional companies, including Wells Fargo, Arm Holdings and Intuit, will not allow their shares to be tokenized on the platform backed by OKX and Intercontinental Exchange. The total includes companies that had previously objected and does not mean that all 22 companies filed objections on the same day. The platform had planned to tokenize shares of 63 companies through the OKX-ICE joint venture. The expanding list of objections puts issuer consent at the center of the venture’s ability to broaden the range of shares available for trading.
An earlier notice dated October 19 listed 9 companies that had objected, including Broadcom, Verizon and UnitedHealth Group, according to Cointelegraph. By October 23, the total had reached 22, according to the document reviewed by Reuters. The difference between the figures reflects the expansion of the list of objecting companies over several days, with 6 additional companies reported in the latest account. The October 19 notice did not state the reasons for the objections, Cointelegraph reported. The objections concern listing the relevant companies’ shares as tokens on OKX-ICE and do not amount to a rejection of stock tokenization in general.
The regulatory framework allows an issuer to object to the platform trading a token representing its shares, according to Reuters’ explanation of the exemption rules. The rules require the platform to notify the company before listing the token, and it may not proceed with the listing if the issuer objects. The Securities and Exchange Commission document states that trading in a tokenized stock may not begin until at least 30 calendar days after the company receives notice. If the company submits a written objection during that period, the platform may not make the token available for trading. It must amend its public notice within 5 business days of receiving the objection to inform the public.
On September 17, the Securities and Exchange Commission granted a temporary, conditional exemption to eligible platforms for trading tokenized stocks within a permitted trading environment, while it considers whether further steps are needed. According to the agency’s summary of the order, the conditional exemption lasts 5 years for certain trading platforms and liquidity providers. The exemption remains subject to conditions, including notifying issuers and allowing time to object before trading begins. The SEC sought public comment on the temporary exemption when it was issued. SEC Chair Paul Atkins said the commission would consider the need for “additional steps to facilitate on-chain trading.”
A Wells Fargo spokesperson told Reuters the company would not comment. Spokespeople for Arm Holdings and Intuit did not immediately comment, the agency reported. Wells Fargo shares closed at $83.01 on October 22, compared with $82.41 in the previous session, according to EL7 data. The stock then closed at $82.33 on October 23, down 0.82% for the session, according to Investing.com data. These prices show the stock’s movement on the days cited, without linking it to the objections or treating it as a response to them.