The first tokenized stock trading venue operating under the US Securities and Exchange Commission's Innovation Exemption completed its initial trades this week, but the milestone arrives amid formal objections from 67 companies to a rival tokenization proposal led by OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange. The dispute underscores an emerging divide over who can authorize tokenized shares and how publicly traded stocks enter blockchain markets.

First Tokenized Stock Trades Settle on Canton

According to Crypto in America, TSV LLC facilitated its first trades on Wednesday, involving issuer-sponsored shares of Canton Strategic Holdings (CNTN). The transactions were executed in a permissioned pool on Tradecraft, an automated market maker protocol, with the permissioned structure limiting participation to approved users.

The Canton Network handled atomic settlement, in which the trade and the change of ownership finalize as a single simultaneous step rather than in separate processing cycles, while Fairmint, which operates as an SEC-registered transfer agent, recorded the tokenized shares and maintained ownership records. Transfer agents are the parties charged with maintaining companies' official shareholder records under US securities rules. Existing shareholder Five North sold the shares, DRW Cumberland purchased them, and Flowdesk provided liquidity.

67 Companies Object to OKXICE Plans

In parallel, 67 companies have formally opposed OKXICE's proposal to tokenize their shares. Of the 62 companies originally named in the proposal, 56 objected. Only Strategy, Robinhood, Coinbase, Circle, Securitize and BitGo have not objected. Eleven additional companies outside the original list also filed objections.

The objectors include all seven Magnificent Seven companies, along with Walmart, JPMorgan, Coca-Cola, Eli Lilly, Boeing and McDonald's. The breadth of the list spans large-cap technology, banking, retail, pharmaceutical, aerospace and consumer brands.

Issuer Consent Divides Tokenization Approaches

At the core of the dispute is how platforms obtain permission to tokenize shares. TSV relies on issuer-sponsored tokenization executed through an authorized transfer agent, whereas OKXICE depends on an unaffiliated third party.

Applied Optoelectronics cautioned that investors could mistakenly believe it sponsored offerings in which it played no part. JPMorgan stated that it supports tokenization but opted out of OKXICE's proposal at this stage.

Separately, Nasdaq has opposed TSV's framework, favoring an issuer-centric approach within existing regulated equity markets. Crypto in America also reported that another upcoming venue intends to require issuer consent before tokenization, securing company approval before listing any shares — an approach that contrasts directly with OKXICE's third-party model. With TSV now trading, Nasdaq pressing for an issuer-centric model, and another consent-first venue in development, how issuers grant or withhold permission is positioned to shape the next phase of tokenized US equities.