U.S.-listed companies object to tokenized share trading on OKXICE

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U.S. companies block tokenized shares

Highlights

Nine U.S.-listed companies, including Verizon, Broadcom, and UnitedHealth Group, objected to tokenized trading of their shares on OKXICE, halting their listings under SEC rules.
OKXICE still plans to launch tokenized trading for dozens of other U.S.-listed companies, such as Nvidia, Apple, and Amazon, despite issuer objections raising concerns about price impact and transparency.
Nasdaq will not allow its own shares to be tokenized on non-traditional venues, citing real-time price display and reporting concerns, even after receiving SEC approval for a tokenized equities pilot.

Objections challenge OKXICE listing plans

As reported by The Block, citing OKXICE in a public notice dated Thursday, the venue has received objections from Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon, Applied Optoelectronics, Broadcom and UnitedHealth Group over tokenized trading of their shares.

A timely objection prevents a tokenized securities venue from offering that company's stock under the SEC framework cited in the notice. Eight of the nine companies were among the 63 tickers that OKXICE said on Oct. 4 it intended to offer, while Cerebras was not on that list.

Applied Optoelectronics is the only company in the group for which a public explanation is provided in the report. The Wall Street Journal cited a company spokeswoman as saying the fiber-optic maker is unsure how tokenization would affect its stock price, liquidity and volatility, and is also concerned investors could be confused about the company's involvement in an offering it neither sponsors nor endorses.

Broader market concerns around tokenized equities

OKXICE told the Journal it still plans to launch trading for dozens of other U.S.-listed companies, including Nvidia, Apple, Microsoft, Amazon, Alphabet, Tesla, JPMorgan Chase and Walmart. The objections nevertheless highlight a key friction point for crypto-linked equity trading platforms, as corporate issuers weigh possible market impact against the sector's push for broader tokenized access.

Nasdaq is also opting out of having its own shares tokenized under the SEC's framework, according to an FAQ on its website. A Nasdaq spokesperson told the Journal the exchange does not want its stock trading on a venue that does not show best prices in real time or report to the consolidated tape, even as it remains supportive of tokenization.

The SEC approved a Nasdaq pilot to trade tokenized equities earlier this year. Nasdaq has argued, according to the Journal, that tokenized trading outside the national market system could diverge from the broader market on pricing and transparency.

In our earlier coverage of the tech and AI-linked stock selloff, we explained how hotter-than-expected inflation data revived expectations of higher interest rates and intensified pressure on chipmakers, cloud and data-center names. We also noted that investors were rethinking the cost of financing large-scale AI infrastructure, which amplified risk-off moves across major tech shares and related markets.

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