OKXICE sets Nov. 23 start for U.S. tokenized securities venue

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OKXICE US tokenized securities launch

Highlights

OKXICE, a joint venture between OKX and Intercontinental Exchange, will launch its U.S. tokenized securities venue on Nov. 23 under a SEC innovation exemption.
The venue confirmed 70 assets from issuers like Coinbase, Circle, Robinhood and 59 ETFs, while 67 companies including Meta, Home Depot, Netflix and Tesla have opted out.
Competition intensifies with Nasdaq and Kraken developing tokenization as concerns mount over issuer rights, market fragmentation, and trading transparency outside the National Market System.

Launch plan under SEC exemption

As reported by The Block, OKXICE, the joint venture between OKX and Intercontinental Exchange, plans to launch its tokenized securities venue on Nov. 23 under the Securities and Exchange Commission's innovation exemption introduced in September. The framework allows approved venues to bring capital markets in the U.S. on-chain without registering as traditional exchanges.

Former New York Governor and OKXICE Co-Chair Andrew Cuomo said in a statement that the venture sees an opportunity to build on-chain finance in America with the standards and safeguards investors expect. OKX and ICE said the venue is available to U.S. customers who have a CeDeFi Wallet and have completed onboarding.

The companies said they have confirmed 70 assets from issuers including Coinbase, Circle and Robinhood, along with 59 exchange-traded funds. The rollout gives one of the first practical tests of how the SEC's five-year exemption works in live market operations.

Issuer resistance and competitive pressure

The launch is unfolding alongside resistance from listed companies that do not want tokenized versions of their stock to trade on OKXICE. Under the exemption, issuers can decide they do not want their shares to trade on specific venues, and a Nov. 5 filing showed 67 companies had opted out, including Meta Platforms, Home Depot, Netflix, Tesla and Costco.

Some objections center on how tokenization could affect stock price behavior, liquidity and volatility, as well as whether investors might misunderstand a company's involvement in the offering. A spokesperson for one company that opted out told the Wall Street Journal that those concerns drove its decision.

Competition is also building as Nasdaq works on tokenization with crypto exchange Kraken. Nasdaq Chief Legal and Regulatory Officer John Zecca said in an op-ed published by Barron's on Tuesday that tokenization can benefit issuers, but argued any framework should protect the rights attached to underlying shares and preserve issuer influence over how shares are tokenized. He also warned that allowing tokenized securities to trade outside the government-regulated National Market System could fragment market data, reporting and transparency.

In a previous article, we explained how the Nasdaq 100 slide reflected persistent selling pressure and mixed technical signals.

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