Nasdaq-Listed Firms Drive Opposition to OKXICE Tokenized Stock Trading

The number of companies opposing OKXICE’s proposed tokenized stock trading platform has climbed to 38, with reports suggesting that Nasdaq has encouraged some of its listed issuers to formally object to the initiative.

According to journalist Jacquelyn Melinek, an executive at a Nasdaq-listed company said an exchange representative approached the company and recommended submitting an objection. The representative reportedly offered to arrange a call to explain the arguments against the proposed trading venue.

The allegations emerged as OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, prepared to launch 24/7 trading in tokenized U.S. equities.

Nasdaq did not directly address the reported outreach, according to journalist Eleanor Terrett. However, the exchange reiterated its opposition to tokenized stock trading platforms that operate outside established market structures.

Nasdaq Promotes Its Own Tokenization Model

A Nasdaq spokesperson told Terrett that the exchange remains committed to tokenization but intends to develop the technology within the existing securities market framework.

The company highlighted its Nasdaq Equity Token initiative, which it described as an issuer-focused approach designed to introduce tokenization while retaining established market structures.

Nasdaq also confirmed that it does not plan to operate a Tokenized Securities Venue (TSV) under the SEC's temporary innovation exemption. Instead, it is collaborating with Kraken on a separate tokenization initiative expected to launch in the second quarter of 2027.

In a separate statement, Nasdaq denied authorizing a Wall Street Journal advertisement related to tokenization, including the use of its published materials and an associated QR code.

38 Companies Have Filed Objections to OKXICE

Of the 38 companies that have formally objected to OKXICE's proposed platform, 23 are listed on Nasdaq, according to Terrett's reporting.

The venture's public notice dated October 28 identified Walmart, Eli Lilly, Carnival, Arcos Dorados and Cigna among the latest companies to file objections.

The number of objecting companies rose from 33 on October 27 to 38 the following day, marking a rapid increase in opposition. Earlier objections included those from Microsoft, Alphabet, Intel, AMD, JPMorgan Chase and Goldman Sachs.

The latest figures represent a substantial increase from OKXICE's October 15 notice, which identified only nine objecting issuers, as previously reported by crypto.news.

OKXICE's original proposal, submitted on October 4, listed 62 companies represented by 63 stock symbols. However, the list of companies that subsequently filed objections was not limited to those included in the original proposal.

Neither the October 28 notice nor the objections themselves explained the specific reasons each company opposed the proposed trading arrangements.

JPMorgan Chase previously told CoinDesk that its objection did not rule out future participation in tokenization initiatives. The bank said it wanted to carefully assess how its shares would be represented and traded.

SEC Exemption Sets Rules for Tokenized Stock Trading

The dispute is unfolding under a temporary exemption issued by the U.S. Securities and Exchange Commission (SEC) on September 17. The measure allows qualifying trading venues to offer tokenized U.S. stocks through permissioned automated market makers without registering as conventional securities exchanges for those activities.

Under the framework, a venue using a third party to tokenize a company's shares must notify the issuer before trading begins.

Companies then have 30 calendar days from receiving the notice to submit a written objection. If an objection is filed within that period, the venue cannot offer the affected shares under the exemption.

The order does not establish an equivalent process for late objections after the initial deadline expires. As a result, companies that miss the specified window cannot use the original objection mechanism to block subsequent trading.

Importantly, the restriction applies to the particular venue and third-party tokenization arrangement involved. It does not prevent an issuer from sponsoring its own tokenized shares through another platform or arrangement.

How OKXICE Plans to Trade Tokenized U.S. Stocks

OKXICE intends to use permissioned liquidity pools based on Uniswap v4 on its X Layer network. The proposed structure involves tokens backed by underlying shares held through a broker-dealer.

The model would bring tokenized equities into a blockchain-based trading environment while relying on underlying stocks held through traditional financial infrastructure.

The growing number of objections highlights the disagreement over how tokenized securities should enter financial markets. While OKXICE is seeking to introduce a new trading arrangement under the SEC's exemption, Nasdaq is advocating an issuer-centric model that operates within established market structures.

What the Growing Opposition Means for Tokenized Equities

The rise in objections from nine issuers in mid-October to 38 by October 28 illustrates how quickly the debate over tokenized equities is developing. However, the number of objections alone does not establish that all participating companies oppose tokenization itself, nor does the available information confirm that Nasdaq coordinated the objections beyond the reported outreach to at least one listed company.

The distinction between opposing a specific trading venue and rejecting the underlying technology is important. JPMorgan Chase's comments, for example, indicate that an objection to one arrangement need not rule out future participation in tokenized securities markets.

The SEC's framework also gives issuers a defined period in which to object to third-party tokenization, making the timing and delivery of notices consequential for platforms seeking to list shares. As more companies respond, the outcome may depend not only on the technology behind tokenized stocks but also on how issuers, trading venues and regulators resolve questions about control, representation and market oversight.

Ultimately, the debate reflects competing approaches to bringing equities onto blockchain networks: one seeks to introduce new trading venues under a regulatory exemption, while the other emphasizes integrating tokenization into existing market structures. How these approaches coexist could help determine the pace and shape of institutional adoption of tokenized stocks.