A new US Securities and Exchange Commission framework designed to let platforms offer tokenized stock trading is already facing resistance from several major listed companies, complicating efforts to expand the model.

According to a CoinDesk report published Oct. 18, OKXICE said nine companies have objected to tokenized trading of their shares under its proposed service. Nasdaq has also separately said it does not want its own stock traded in tokenized form under the arrangement.

OKXICE proposal draws multiple objections

OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, released materials on Oct. 15 stating that nine companies opposed tokenized trading in their shares.

The companies named include Broadcom, Verizon, UnitedHealth, AppLovin, Applied Digital, Rocket Lab, CoreWeave and Applied Optoelectronics. When Cerebras Systems, which had previously objected, is included, the total reaches nine.

The report did not disclose the specific reasons each of those companies gave for objecting to the OKXICE plan.

Plan targets 24-hour trading in 63 US stocks

On Oct. 5, OKXICE submitted a proposal to the SEC to offer round-the-clock tokenized trading tied to shares of 63 US-listed companies. The proposed service would use blockchain-based liquidity pools for trading and would settle transactions in stablecoins.

The filing relies on the SEC's temporary innovation exemption, introduced last month, which would allow the model to operate for five years rather than under a permanent rule framework.

That structure is meant to open the door to stock tokenization in the US, but it also appears to be one of the reasons adoption may be slower than backers had hoped.

Nasdaq raises transparency concerns

Nasdaq separately said it would not allow tokenized trading of its own shares. Its opposition centers on market structure issues rather than a disclosed objection to tokenization in principle.

The exchange said it does not support trading of its stock on venues where real-time best bid and offer quotes are not shown or where trade information is not routed into the consolidated reporting system.

Those concerns point to a broader dispute over whether tokenized stock platforms can fit within the existing expectations for price transparency and post-trade reporting in US equity markets.

Temporary SEC relief seen as a hurdle

The pushback is also tied to uncertainty around the SEC regime itself. TD Securities said discussions with dozens of listed companies showed limited interest in stock tokenization outside some crypto-related firms.

The firm identified the SEC framework's temporary nature as a major obstacle. Because the model depends on a five-year exemption instead of a permanent rule, companies and financial institutions may hesitate to commit to infrastructure spending or broader participation while policy could still change.

For now, the clearest next step is how the SEC responds to the Oct. 5 OKXICE submission. Until then, objections from issuers and concerns from market operators suggest the rollout of tokenized stock trading in the US may remain constrained.

Source: en.bloomingbit.io