Walmart and 37 other companies have objected to third-party tokenized versions of their shares trading on OKXICE, a proposed round-the-clock venue backed by the owner of the New York Stock Exchange. The objection list has grown with each notice, and the venue still gives no launch date.
Walmart and 37 other companies have objected to third-party tokenization of their shares on OKXICE. The venue's Oct. 28 notice lists Microsoft, Alphabet and JPMorgan among the 38 objectors.
OKXICE is owned equally by an Intercontinental Exchange subsidiary and OKC USA. ICE operates the NYSE, but OKXICE is a separate venue that proposes secondary trading through automated liquidity pools on the XLayer blockchain.
The objection list keeps growing
Earlier notices showed a smaller roster. According to The Daily Hodl, the count climbed from nine on October 15th to 16 on October 19th and 22 on October 23rd. The outlet reported 33 objectors in a revised notice dated October 27th, up from 26 in the version a day earlier.
CryptoSlate counted 16 objectors in Oct. 24 reports. The Daily Hodl said the October 27th notice gives no reason for any objection.
How the objection window works
Under the SEC's exemption, a venue must notify a company before it offers a token of the company's stock created by an unaffiliated third party. A written objection delivered within 30 calendar days of that notice keeps the token off the venue.
On Oct. 19, SIFMA proposed changes that could include affirmative issuer consent, a longer objection period and a universal issuer opt-out.
Price and fee risks
OKXICE's proposed pools price transactions from their asset balances rather than a conventional order book. The venue warns that token prices may diverge from underlying share prices, particularly when regular stock markets are closed or pool liquidity is thin.
According to CryptoSlate, the service fee goes to the venue, while the SEC's Sept. 17 exemption prohibits primary issuance on covered venues. The fee schedule does not quantify any payoff for issuers.
Sources: CryptoSlate, The Daily Hodl
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