Wells Fargo, Arm Holdings and Intuit Among 22 Companies Objecting to OKXICE Tokenized Stock Listings
Key Takeaways
- •Wells Fargo, Arm Holdings and Intuit are among six newly reported companies objecting to the tokenization of their shares on OKXICE, a joint venture between OKX and NYSE parent Intercontinental Exchange.
- •A total of 22 companies now oppose tokenized listings on the platform, representing more than a third of the 62 issuers OKXICE proposed in its SEC filing.
- •Sixteen of the objecting companies are listed on Nasdaq and six on the NYSE, indicating resistance spans both major US listing venues.
- •Nasdaq issued September guidance urging caution for companies considering the SEC's innovation exemption, warning that effects on liquidity, price discovery and shareholder value may not be apparent until well into the experiment.
- •OKXICE co-chair Andrew Cuomo said the venture expected further objections because companies are reluctant to be the first to test the tokenized stock model.
Wells Fargo, Arm Holdings and Intuit are among six additional companies that have reportedly objected to having their US stock listings tokenized on OKXICE, a proposed trading platform structured as a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.
According to a Friday report by Reuters, a total of 22 companies now object to their shares being tokenized on the platform, where listed equities would be represented as blockchain-based tokens. The latest objections join those filed by Microsoft and Google's parent company Alphabet in the previous week.
The objecting issuers lean heavily toward the Nasdaq: 16 of the companies are listed on that exchange, while only six of the stocks trade on the NYSE, the exchange whose parent is OKX's partner in the venture. The objections therefore reach across both major US listing venues.
Nasdaq issued guidance in September for companies weighing the US Securities and Exchange Commission's (SEC) innovation exemption for trading tokenized stocks, warning that issuers “must be cautious about their participation.” The exchange added that “consequences for liquidity, price discovery, and long-term shareholder value may not become apparent until well after the experiment is underway.” The warning came from the same exchange where most of the objecting issuers are listed.
Speaking to Cointelegraph on Tuesday, OKXICE co-chair and former New York Governor Andrew Cuomo said the venture expected further objections, as companies sought to avoid being the first to test the tokenized stock model.
OKXICE proposed listings for 62 companies when it filed with the SEC earlier this month, meaning the reported objections now cover more than a third of the proposed initial lineup. With the proposal pending before the SEC, which issuers would actually appear on any launch lineup remains unresolved.
Cointelegraph contacted Intuit for comment on its decision to opt out of the initiative but did not receive an immediate response. Spokespeople for Wells Fargo and Arm Holdings declined to comment.
