Broadcom, Verizon and Seven Others Object to Tokenized Stock Trading on OKXICE Venue

Nasdaq opts out of SEC innovation framework, TD Securities warns temporary exemption deters issuers

By LineZotpaper

Published19 October 2026

Read Time2 min

Nine listed companies, including Broadcom, Verizon and UnitedHealth, have formally objected to their shares being tokenized on the planned OKXICE venue. The pushback underscores a lack of confidence in the SEC's five-year Innovation Exemption, with Nasdaq also choosing to opt out of the framework.

OKXICE, the joint venture between crypto exchange OKX and New York Stock Exchange parent Intercontinental Exchange, is preparing to launch a venue for trading tokenized stocks around the clock. It would operate under the SEC's five-year Innovation Exemption, issued in September, using Uniswap v4 liquidity pools and settlement in stablecoins.

According to an October 15 public notice from OKXICE, nine companies have formally objected to having their shares traded on the platform. Alongside Broadcom, Verizon and UnitedHealth, the list includes AppLovin, Applied Digital, Rocket Lab, CoreWeave, Applied Optoelectronics and AI chipmaker Cerebras Systems. The update did not disclose why the companies objected or when they submitted their notices.

Separately, Nasdaq has confirmed it will not allow its own shares to be tokenized under the framework. A Nasdaq spokesperson told the Wall Street Journal that the venue does not display best prices in real time or report to the consolidated tape.

The issuer resistance aligns with findings from TD Securities. Analysts led by Reid Noch found that conversations with dozens of issuers showed 'little interest in tokenizing their shares outside a small group of crypto-adjacent companies.' The analysts identified the framework's reliance on temporary exemptive relief, rather than permanent rules, as its biggest hurdle. A future commission could reverse the approach, making it difficult for institutions to justify integration.

OKXICE had initially targeted shares of 63 U.S.-listed companies for the venue.

Analysis

Why This Matters

The formal objections from major companies and Nasdaq's opt-out threaten the foundation of the SEC's first major experiment with tokenized equities.
Institutional hesitancy could stymie investment in the infrastructure needed for the innovation pathway to succeed.

Background

In September, the SEC introduced a five-year Innovation Exemption designed to allow trading of blockchain-based representations of company shares. The OKXICE venue was the first major project to emerge under the rule, promising 24/7 trading and settlement in stablecoins. The framework allows tokenized stocks if underlying shares are held one-for-one by a registered broker-dealer.

Key Perspectives

Issuers (Broadcom, Verizon, UnitedHealth, et al.): Nine companies have opted out of the OKXICE listing, signaling reluctance to have their equity traded on a crypto-native venue, though their specific reasons have not been made public. Nasdaq: The exchange operator has elected not to tokenize its own shares, citing the absence of real-time price display and consolidated tape reporting on the new venue. TD Securities: The research firm warns that the exemption's temporary status creates too much regulatory risk for large institutions, potentially limiting adoption to a small group of crypto-adjacent firms. OKXICE: The venture is proceeding with its regulatory notice and continues to target an initial slate of 63 companies for tokenized trading.

What to Watch

Whether more issuers from the initial 63-company target list file objections.
The SEC's response to institutional pushback and whether any modifications to the framework are announced.
The pace of institutional integration with tokenized trading venues ahead of the exemption's 2029 expiry.

Sources

SEC tokenized stock framework faces issuer pushback as Broadcom, Verizon object to OKX-ICE listing · CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedBroadcom, Verizon and seven other companies objected to their shares trading on OKXICE’s planned tokenized-stock venue.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Broadcom, Verizon and UnitedHealth are among nine companies objecting to having their shares traded on OKXICE’s planned tokenized-stock platform.”
Partly supportedNasdaq opted out of the SEC Innovation Exemption framework.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Nasdaq (NDAQ) has separately said it would opt out of having its own shares tokenized under the framework, according to an FAQ on its website .”
Partly supportedThe issuer pushback demonstrates a lack of confidence in the SEC’s five-year Innovation Exemption.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Issuer resistance and uncertainty over the temporary regulatory framework could limit available stocks and discourage institutional investment in tokenized trading infrastructure.”
Partly supportedTD Securities warned that the temporary exemption deters issuers.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “A future commission could reverse the approach, complicating the case for investing in infrastructure and discouraging institutions from integrating with venues even after they launch, the analysts said.”
SupportedTD Securities found “little interest in tokenizing their shares outside a small group of crypto-adjacent companies.”CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Conversations with dozens of issuers showed “little interest in tokenizing their shares outside a small group of crypto-adjacent companies,” the analysts wrote in a report shared with CoinDesk.”
SupportedOKXICE is a joint venture between OKX and Intercontinental Exchange, the parent of the New York Stock Exchange.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “OKXICE, the joint venture between crypto exchange OKX and New York Stock Exchange parent Intercontinental Exchange (ICE) preparing to offer tokenized stock trading.”
SupportedOKXICE plans to offer around-the-clock trading in tokenized stocks.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The venue would use the SEC’s five-year Innovation Exemption to offer around-the-clock trading of blockchain-based shares backed one-for-one by underlying stock.”
SupportedThe SEC issued the five-year Innovation Exemption on September 17.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The venue would operate under the SEC’s five-year “Innovation Exemption,” issued September 17, which allows qualifying platforms to trade tokenized U.S. stocks using automated market makers and liquidity pools.”
SupportedThe objecting issuers include AppLovin, Applied Digital, Rocket Lab, CoreWeave, Applied Optoelectronics and Cerebras Systems.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “It lists nine objecting issuers in total, including AI chipmaker Cerebras Systems (CBRS), which formally opted out of being listed earlier.”
SupportedA Nasdaq spokesperson said the venue does not display best prices in real time or report to the consolidated tape.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “A Nasdaq spokesperson told the Wall Street Journal that the company does not want its shares trading on a venue that does not display best prices in real time or report to the consolidated tape”
SupportedTD Securities identified reliance on temporary exemptive relief rather than permanent rules as the framework’s biggest hurdle.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “TD Securities named the framework’s reliance on temporary exemptive relief, rather than permanent rules, as its largest hurdle.”
SupportedOKXICE initially targeted shares of 63 US-listed companies.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “OKXICE announced on October 5 that it had notified the U.S. Securities and Exchange Commission of plans to launch the venue, initially targeting shares of 63 U.S.-listed companies.”