Microsoft, Alphabet and Goldman Sachs have added their names to the list of objectors to a planned tokenized stock trading venue from OKX and ICE, according to the disclosed count. The objections are being filed under the Securities and Exchange Commission's framework for such venues. With the three new additions, the total number of disclosed objections has reached 16.
Seven more issuers have also opted out of being listed on the venue, bringing the total number of companies that have declined inclusion to a level that now includes some of the largest names in technology and finance.
Who has objected and why
The objections come from issuers whose stocks would be eligible for trading on the OKX-ICE platform. Microsoft, Alphabet and Goldman Sachs join a growing list of companies that have formally told regulators they do not want their shares listed on the tokenized venue. The specific reasons for each company's objection have not been disclosed, but the opt-outs are being made through the SEC's framework, which allows issuers to exclude their securities from such trading venues.
The venue, a joint effort between crypto exchange OKX and Intercontinental Exchange (ICE), aims to offer tokenized versions of publicly traded stocks. Tokenization involves creating digital representations of shares that can be traded on a blockchain, potentially enabling fractional ownership and faster settlement. The concept has gained traction in recent years, but it has also drawn scrutiny from regulators and traditional market participants.
The opt-out mechanism under the SEC framework
Under the SEC's framework for tokenized stock trading venues, issuers are given the opportunity to opt out of having their securities listed. This provision is designed to give companies control over how their shares are represented and traded. The framework requires venues to disclose which issuers have objected or opted out, providing transparency to the market.
The objections from Microsoft, Alphabet and Goldman Sachs are significant because these companies are among the most heavily traded and widely held stocks in the world. Their refusal to participate could limit the appeal of the OKX-ICE venue, which would need a broad selection of stocks to attract traders. The seven additional issuers that have opted out further narrow the pool of available securities.
What the growing list means for the venue
With 16 disclosed objections, the OKX-ICE venue faces a mounting challenge in launching with a compelling roster of tokenized stocks. The objections don't necessarily block the venue from operating, but they reduce the number of high-profile stocks that can be offered. For a trading platform, liquidity and choice are critical, and a limited list of available securities could make it harder to attract users.
The objections also highlight a broader tension between crypto-native trading venues and traditional issuers. Companies may be wary of having their shares traded on platforms that operate outside conventional market structures, or they may have concerns about regulatory compliance, market integrity, or the potential for increased volatility. The SEC's framework is intended to address some of these concerns by giving issuers a say, but the opt-outs show that many companies remain hesitant.
What happens next
The SEC will continue to collect objections and opt-outs as part of its review of the OKX-ICE venue. The agency has not set a deadline for when it will make a final decision on the platform, and it's unclear whether the growing list of objections will affect the timing or the outcome. For now, the venue's operators will have to decide whether to proceed with a reduced set of stocks or to seek ways to address the concerns of issuers. Companies that have not yet objected still have the option to do so under the framework, and more could follow.
