Intel, Oracle, IBM and IonQ have objected to plans by crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to offer blockchain-based trading of their shares, bringing the total number of issuer objections to 26, according to an updated public notice from the joint venture OKXICE.
The four companies were named in a notice dated Monday, Oct. 26, and join earlier objectors including Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo. The objections highlight issuer caution about the US Securities and Exchange Commission's five-year "Innovation Exemption," which permits round-the-clock blockchain trading but gives companies 30 days to object before their shares can be offered.
Under the framework, venues must notify issuers and give them the chance to opt out. Of the 62 companies in OKXICE's original proposed roster, 23 have now objected, or about 37%, according to a CoinDesk tally. Other objectors include Cerebras Systems, Arm Holdings and Wells Fargo, which were absent from the original selection.
Industry experts have noted that objecting costs nothing, while staying silent allows trading to begin without a later mechanism to withdraw consent. The financial benefit for issuers is also uncertain. Tokenization could bring additional demand, particularly from overseas investors, but concerns about thin, round-the-clock trading outside familiar market structure remain, as TD Securities' Reid Noch previously told CoinDesk.
Andrew Cuomo, OKXICE's co-chairman and former New York governor, described the objections as expected, with many companies preferring to "wait and see how it goes rather than be the first to participate," he said during a press call last week.
Analysis
Why This Matters
- Tokenized stock trading could transform equity markets by enabling 24/7 blockchain-based trading, but widespread issuer opt-outs may limit liquidity and adoption.
- The SEC's Innovation Exemption is being tested: issuer reluctance could signal that the framework needs adjustments to incentivise participation.
- The outcome will affect how traditional finance and crypto markets intersect, with implications for global investors and market structure.
Background
OKX and ICE formed OKXICE in 2024 to tokenize equities using blockchain technology. The joint venture plans to use Uniswap v4 liquidity pools on OKX's XLayer blockchain, with transactions settled in stablecoins. The SEC granted a five-year exemption allowing for experimental trading of tokenized stocks, but with an opt-out mechanism for issuers.
Key Perspectives
Issuers (including Intel, Oracle, IBM, IonQ, Microsoft, Alphabet, Goldman Sachs, Cisco, Wells Fargo, Cerebras Systems, Arm Holdings): Have objected to having their shares tokenized by OKXICE, choosing to opt out under the SEC framework.
Andrew Cuomo, OKXICE co-chairman: Said the objections are expected, with many companies preferring a "wait and see" approach rather than being first to participate.
Industry experts: Noted that objecting costs nothing, while staying silent allows trading to begin without a later mechanism to withdraw consent, suggesting a cautious approach by issuers.
TD Securities' Reid Noch: Raised concerns about thin, round-the-clock trading outside familiar market structure, and uncertainty about the financial benefit for issuers.
What to Watch
- Whether the SEC modifies the Innovation Exemption framework based on issuer feedback or extends the opt-out period.
- The total number of objections when the 30-day window closes for the remaining companies on OKXICE's roster.
- How OKXICE adjusts its strategy if a significant portion of major issuers continue to opt out.
Checked
11 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedIntel, Oracle, IBM and IonQ objected to OKX and ICE’s plans, bringing total issuer objections to 26.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “IBM, Oracle, Intel and IonQ have opted out of plans by crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to offer blockchain-based trading of their shares, bringing the total number of issuer objections to 26.”
- SupportedThe four companies were named in an updated OKXICE public notice dated Monday, October 26.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The four companies were named in an updated public notice dated Monday, Oct. 26 , from OKXICE, the two firms’ joint venture.”
- SupportedThe four companies join earlier objectors including Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “They join earlier objectors including Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo.”
- SupportedThe SEC’s Innovation Exemption lasts five years and permits qualifying venues to test round-the-clock blockchain-based stock trading.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The agency’s five-year “Innovation Exemption” gives qualifying venues room to test round-the-clock blockchain-based trading of stocks”
- SupportedUnder the framework, venues must notify issuers and give them 30 days to object before offering tokenized versions of their shares.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Under the framework, venues must notify issuers and give them 30 days to object before offering tokenized versions of their shares.”
- SupportedThe four newly disclosed objectors were among the 62 companies in OKXICE’s original proposed roster; 23 of those companies have objected, about 37%.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “All four newly disclosed objectors were among the 62 companies in OKXICE’s original proposed roster . That brings objections from the original selection to 23, or about 37%, according to a CoinDesk tally.”
- SupportedCerebras Systems, Arm Holdings and Wells Fargo were objectors absent from the original selection.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The overall count also includes Cerebras Systems, Arm Holdings and Wells Fargo, which were absent from that from the original selection.”
- SupportedIndustry experts said objecting costs nothing, while staying silent allows trading to begin without a later mechanism to withdraw consent.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Objecting costs nothing, while staying silent allows trading to begin without a mechanism to withdraw that consent later.”
- SupportedThe financial benefit for issuers is uncertain.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “The financial benefit for issuers is also uncertain yet.”
- SupportedTokenization could bring additional demand, particularly from overseas investors, but concerns include thin, round-the-clock trading outside the familiar market structure.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Tokenization could bring additional demand, particularly from overseas investors, but that may not be enough to offset concerns about thin, round-the-clock trading outside the familiar market structure, TD Securities’ Reid Noch previously told CoinDesk.”
- SupportedAndrew Cuomo, OKXICE’s co-chairman and former New York governor, described the objections as expected and said many companies would “wait and see how it goes rather than be the first to participate” during a press call last week.CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data: “Andrew Cuomo, OKXICE’s co-chairman and former New York governor, previously described the objections as expected, with many companies rather “wait and see how it goes rather than be the first to participate,” he said during a press call last week.”
