Tokenized Stocks: 9 Companies Oppose OKX-ICE, Nasdaq Withdraws

Invitation declined. Broadcom, Verizon, UnitedHealth, CoreWeave, and five other American companies have stated that they do not want their stocks tokenized on OKX-ICE. The Nasdaq has made the same choice for its own securities. The joint venture of OKX and the owner of the NYSE had submitted a project in early October concerning 63 tokenized American stocks. Eight of the nine objectors were on this list. Their refusal is not coincidental. The SEC has empowered them to say no.

Key points of this article:

• Major American companies, including Broadcom and Verizon, have rejected the tokenization of their stocks on the OKX-ICE platform, fueling a debate on the implications of this technology.
• The SEC has established a mechanism allowing companies to oppose the tokenization of their stocks, leading some to express concerns about volatility and investor perception.

Who Said No to Tokenized Stocks, and the Only One Who Explained Why

The list of nine can be summarized in one line: Broadcom, Verizon, UnitedHealth, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Applied Optoelectronics, and Cerebras. Eight of them were part of the 63 targeted tickers, with Cerebras excluded. The notice published by OKX-ICE on October 15 does not state why these companies objected or when they submitted their refusals.

Only one spoke out. A spokesperson for Applied Optoelectronics explained to the Wall Street Journal that the company was unaware of the effect that tokenization would have on its stock price, liquidity, and volatility. It also feared that investors might believe it was involved in an offering that it had neither sponsored nor approved. The operation, according to them, brought no clear benefit "for AOI or our shareholders." Reid Noch from TD Securities notes that several issuers discovered this framework after its announcement and raised serious concerns.

The Veto Power the SEC Slipped into Its Exemption

Silence implies consent, and the SEC has written the rule explicitly. When a third party tokenizes a company's stock without its consent, the platform must notify the company at least thirty calendar days before trading begins, reports The Block on October 17. The issuer then has thirty days to file an objection notice. If filed on time, this notice prohibits that venue from offering the token. Otherwise, silence equals permission.

The crucial detail lies elsewhere. The objection only applies to the platform that sent the notification, and each new venue restarts its own clock. Brett Redfearn, president of Securitize, puts it differently: a company can reject a venue without rejecting tokenization.

Tokenized Stocks: Banks Advance While Issuers Hold Back

The banks, on the other hand, are moving forward. Goldman Sachs, Wells Fargo, and Morgan Stanley view tokenization as a growth opportunity rather than a threat, CoinDesk reported on October 17. Companies whose stocks would be tokenized are showing significantly less urgency.

The Nasdaq plays a double game. The exchange refuses the tokenization of its own stocks in a FAQ published on its website. It does not want to see them traded on a venue that does not display the best prices in real-time and does not report to the consolidated tape, the stream that aggregates transaction data from the U.S. market. It remains supportive of tokenization otherwise, and the SEC has approved its own pilot. OKX-ICE, for its part, maintains its launch for dozens of companies, including Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, JPMorgan Chase, and Walmart. Andrew Cuomo, co-chair of the joint venture, anticipated skepticism and presents the project as a first step towards the tokenization of securities.

The exemption granted by the SEC lasts for five years and caps the scheme at 75 and then 250 symbols, for 0.25% and then 2.5% of daily volume. Rodrigo Seira, a partner at Cooley, sees it as a testing ground before writing permanent rules. The same Nasdaq that dismisses its own tokens estimated in billions the collateral that tokenization could unlock. Eight refusals out of sixty-three. The thirty-day clock will reset in front of the next platform.

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