16 Companies Object to OKX Stock Tokens, but Tokenization Moves Ahead

Microsoft, Google parent Alphabet, Goldman Sachs and McDonald’s are among 16 companies that have filed objections to OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), the parent of the New York Stock Exchange. The platform plans to let users trade tokenized versions of 62 US-listed companies around the clock.

The objections do not necessarily signal opposition to tokenization itself. Instead, they raise questions about who can tokenize a company’s shares, where those tokens trade, how prices are determined and who benefits commercially.

As of October 19, the number of objecting companies had climbed from one to 16 in just 15 days. Fifteen appeared on OKXICE’s original list of 62 companies; the sixteenth, AI-chipmaker Cerebras, was not included.

The latest additions included Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald’s and Western Digital. Earlier objectors included Broadcom, Verizon and UnitedHealth. According to The Block, optical communications company Applied Optoelectronics cited concerns about pricing, liquidity and volatility.

The growing list highlights a distinction at the heart of the tokenization debate: companies may support putting securities on blockchain networks while resisting third-party platforms that seek to trade representations of their shares without their involvement.

What Gives Companies the Right to Object?

On September 17, the US Securities and Exchange Commission (SEC) introduced a five-year innovation exemption framework for certain tokenized securities venues and liquidity providers.

The framework offers conditional exemptions from two regulatory definitions: qualifying tokenized securities venues may avoid being classified as exchanges under the Securities Exchange Act, while certain liquidity providers may avoid classification as dealers.

The exemptions are limited. Eligible products include tokenized versions of US-listed stocks and certain ETFs traded through permissioned automated market makers and liquidity pools. Synthetic third-party tokens are excluded, and the tokens must preserve the economic and voting rights of the underlying securities. Other conditions include limits on eligible assets and trading volume, public disclosures, recordkeeping and trading halts aligned with the underlying stock.

The framework does not waive other applicable securities laws, including anti-fraud requirements and rules governing issuance and registration.

It also establishes a process for issuer objections. When an unrelated third party proposes to issue a token representing a company’s shares, the platform must notify the company in writing and wait 30 days. If the company objects in writing during that period, the platform cannot list the token. If the company does not respond, it is deemed not to have objected.

Three details matter:

  • The rule targets third-party issuance. Tokens issued by the company itself, or by someone acting on its behalf, are treated differently.
  • Objections are platform-specific. Another platform must begin its own notification process.
  • Objections are public. The framework makes the dispute visible to investors and the market.

The SEC has also highlighted concerns about maintaining shareholder records when shares move on-chain and preventing token prices from diverging from underlying stock prices.

The result is a framework that permits limited experimentation while giving issuers a mechanism to challenge third-party tokenization.

Companies Are Exploring Their Own Routes

Objecting to OKXICE does not necessarily mean rejecting tokenization.

On July 15, approximately 40 institutions completed real transactions involving tokenized assets held by the Depository Trust Company (DTC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC). Goldman Sachs participated in the initiative.

The assets included Microsoft and Circle shares, the QQQ and SPY ETFs, and US Treasuries. Settlement took place on Besu, an enterprise blockchain, and Canton, a network designed for regulated financial markets.

DTCC said the tokens retained the rights and ownership associated with their underlying assets. At the time, the organization expected its broader tokenization service to launch in October for DTC participants.

This model differs from OKXICE’s approach. Rather than allowing an unrelated platform to create tokens representing shares, it places tokenization within established securities infrastructure.

For issuers and financial institutions, the distinction can affect governance, shareholder records, settlement and control over how their assets are distributed.

Why Nasdaq Is Taking a Similar Position

Nasdaq is not among the 16 objectors, but it has separately said it would not allow its own shares to be tokenized under the SEC’s framework.

A spokesperson told The Wall Street Journal that Nasdaq was concerned about stock trading on platforms that do not display the best available quotes in real time or report transactions to the consolidated market data system.

Qualifying platforms under the exemption are not subject to Regulation NMS, which governs important aspects of US equity-market competition and best execution. OKXICE has also disclosed that its platform does not operate an order book.

Yet Nasdaq is pursuing tokenization through another route. On September 10, it announced that Nasdaq Ventures had agreed to invest $100 million in Payward, Kraken’s parent company, to advance a jointly developed Nasdaq Equity Token framework.

The contrast is telling. Nasdaq is exploring blockchain-based securities while questioning whether a platform outside the conventional market structure can provide the transparency and price protections expected in US equity trading.

The disagreement is less about whether stocks should be tokenized than about the infrastructure and rules governing their trading.

OKXICE’s Next Move

Andrew Cuomo, former New York governor and co-chair of OKXICE, has characterized the objections as less definitive than outright rejection. He argued that some companies want to observe how tokenized stocks perform before deciding whether to participate.

OKXICE has described the initiative as a limited experiment. Under its announcement, the platform could offer up to 75 securities in its first tier under the Limit Up-Limit Down mechanism, with daily trading volume for each security capped at 0.25% of its average daily volume over the previous month.

Carlos Domingo, CEO of tokenization company Securitize, has pointed to issuer-led models as another way forward. For OKXICE, that could mean shifting from independently issuing tokens to distributing tokens authorized by the companies themselves.

Such a model could help address concerns about control and legitimacy, although it would still need to resolve questions about trading venues, market data, liquidity and investor protections.

The Battle Is Over Who Controls Tokenized Stocks

As tokenization expands, competing models are emerging. Crypto-native platforms offer continuous trading and access to blockchain-based markets, while traditional financial institutions are developing systems that preserve established ownership, settlement and regulatory arrangements.

The key question is what happens when the same company’s shares are represented by multiple tokens across different platforms.

If Microsoft shares, for example, are represented by an issuer-authorized token and an unrelated third-party token, how will prices remain aligned? Which token carries enforceable shareholder rights? And how will investors know whether they own the underlying security or merely a contractual claim linked to its price?

These questions go beyond the technology. They concern ownership, market integrity and control over the distribution of financial assets.

The emerging divide is not simply between Wall Street and crypto. It is between competing visions of tokenization: one built around open distribution and another centered on issuer consent and established financial infrastructure.

This article is for informational purposes only and does not constitute investment advice. Markets involve risk; invest with caution.