Alphabet (GOOG, GOOGL), Goldman Sachs (GS) and Microsoft (MSFT) have joined the growing list of U.S.-listed companies invoking an SEC objection right to prevent tokenized versions of their shares — blockchain-based representations of publicly listed stock — from being traded on OKXICE.

The three companies are the latest to oppose the joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the parent of the New York Stock Exchange. The objections represent the first live test of a 30-day veto that allows a public company to block a tokenization venue from listing its stock, according to a public notice from OKXICE.

The first companies named as objectors in an OKXICE notice dated October 15 were Cerebras Systems (CBRS), AppLovin (APP), Applied Digital (APLD), Rocket Lab (RKLB), CoreWeave (CRWV), Verizon (VZ), Applied Optoelectronics (AAOI), Broadcom (AVGO) and UnitedHealth Group (UNH). Together, they represented roughly 14% of the 63 stocks OKXICE had planned to list.

Eight of those nine companies appeared on the ticker list OKXICE filed with the SEC on October 4. Cerebras was the exception: The AI chipmaker moved to block a listing before OKXICE formally named it. CoreWeave and Broadcom, both listed on Nasdaq, had already said they would not participate in the venue, which is half-owned by the parent of a rival exchange.

Caterpillar (CAT), McDonald’s (MCD), Qualcomm (QCOM) and Western Digital (WDC) are among the other companies that have recently opposed having their shares listed. The total number of companies objecting has now reached 16. The latest companies to object have not provided explanations.

Why Applied Optoelectronics objected

A spokesperson for Applied Optoelectronics said the fiber-optic maker was uncertain how tokenization could affect its share price, liquidity or volatility. The company also expressed concern that investors might mistake the tokens for assets it had sponsored.

The spokesperson said Applied Optoelectronics saw no benefit “to AOI or our shareholders” that would justify the uncertainty.

Other companies among the nine initial objectors also raised concerns about potential effects on price and liquidity. They said tokenized shares could create confusion because their equity would be traded on a venue with which they have no relationship.

A new veto for issuers

OKXICE plans to operate under the SEC’s Innovation Exemption, a five-year order issued by the agency on September 17 that is set to expire on September 17, 2031. Davis Polk, which advised a client on the rule, described the exemption as a way for permissioned on-chain venues to trade tokenized U.S.-listed stocks without registering as exchanges. It also allows their liquidity providers to avoid dealer registration, according to the firm’s description the exemption.

For issuers, the exemption includes a notice-and-objection process. When a third party tokenizes a stock rather than the company itself, the venue must notify the company at least 30 calendar days before trading begins. A written objection submitted during that period prevents the token from being listed on that venue, while silence counts as approval. Applied to OKXICE, that means the 16 objectors’ tokens cannot be listed on the platform, and any issuer that stays silent through its 30-day window is treated as having agreed to the listing.

Davis Polk noted that the mechanism is new. Companies generally cannot prevent a national exchange or alternative trading system from trading their shares. An objection applies only to the venue that issued the notice, meaning each new platform starts its own 30-day period.

OKXICE’s planned venue

OKXICE is a 50-50 venture between OKX and ICE, with former New York governor Andrew Cuomo serving as co-chair. The platform is not yet live and has not announced a launch date, so every objection so far has arrived before the venue has processed a single trade.

When it opens, OKXICE plans to operate permissioned Uniswap v4 liquidity pools on X Layer, a layer-2 network. According to the venue’s notice, each stock will be paired with USDC, USDG or USDT. Traders will have to complete identity and sanctions screening and hold a non-transferable “soulbound” token to access the pools.

Nasdaq has already said it will opt its own shares out of the venue. The exchange said it does not want its shares traded on a platform that does not display the best prices in real time or report transactions to the consolidated tape.

Tokenized stocks were valued at more than $3.4 billion as of October 20, up from more than $688 million at the beginning of the year, according to RWA.xyz data. How many of the remaining planned issuers follow the objectors’ lead, and whether OKXICE announces a launch date, are the next developments to watch.