Objections keep growing as Amazon, Tesla and SpaceX, join the companies objecting to tokenized trading of their shares on OKXICE, the venue planned by OKX and Intercontinental Exchange. Disclosed objections now stand at 56, and the deadline for some issuers falls on Tuesday.
Amazon, Tesla and SpaceX joined companies saying no to the blockchain-based stock venue that crypto exchange OKX and NYSE parent Intercontinental Exchange are building. Netflix, SoFi Technologies and Lam Research also appeared in OKXICE's updated public notice dated Monday, Nov. 2. The six additions bring disclosed objections to 56, up from 50 in Friday's update.
What the venue plans to offer
The joint venture plans to let investors trade tokenized versions of U.S. shares around the clock, paying with stablecoins. It would operate under the SEC's five-year "innovation exemption," which lets qualifying marketplaces use automated market makers instead of an order book.
Objections matter because they restrict the offering. Under the SEC's Sept. 17 exemption order, a timely issuer objection prevents a venue from offering that company's stock in tokenized form when an unaffiliated third party created the token.
Nearly 80% of the initial selection has opted out
Of the 62 companies OKXICE initially picked for trading, 49, or about 79%, have now objected, according to a CoinDesk tally. Thirteen companies from that selection have no disclosed objection, including Apple, Strategy, Robinhood and Coinbase.
However, the silence does not signal consent. The Defiant reports that the Nov. 2 notice describes eligible stock tokens generally rather than listing specific securities for trading.
The deadline depends on receipt
Companies have 30 days after receiving a venue's written notice to object. For issuers that received notice on Oct. 4, that deadline falls on Tuesday, Nov. 3. Venues have up to five business days to publish objections, so further responses could emerge after that date.
Andrew Cuomo, OKXICE's co-chairman, said at a Friday press conference that many companies wanted to see how the market worked first. According to Cuomo: "we are at the very beginning of the rollout of fundamentally different market structure"
Sources: CoinDesk, The Defiant
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