Fifty Companies, Including Nvidia and Nike, Oppose OKX-ICE Stock Tokenization

Fifty public companies have now formally objected to the tokenization of their shares through the proposed platform by OKX and Intercontinental Exchange (ICE), known as OKXICE. The latest objections include major firms such as Nvidia, Nike, Costco, Micron, and Reddit, adding to a growing list of companies opposing this initiative.

The joint venture aims to create a Tokenized Securities Venue (TSV) that would allow blockchain-based representations of U.S.-listed shares, with each token backed by an underlying share held by a registered broker-dealer. Token holders would maintain shareholder rights, including dividends and voting rights, with trading facilitated through stablecoins like USDC and USDT on OKX’s X Layer blockchain.

As of now, 43 out of the initial 62 companies proposed for tokenization have raised objections, accounting for approximately 69% of the total. This rapid increase in opposition has been noted since the initial notice period began, with the number of objectors rising from nine to fifty within a short span.

The objections stem from the SEC’s Innovation Exemption, which allows tokenized securities venues to trade blockchain versions of U.S. stocks without registering as traditional exchanges. Companies have a 30-day window to object after being notified of their stock's tokenization, and silence is considered consent.

While the reasons for the objections have not been publicly disclosed, some companies, like JPMorgan, have expressed a desire for careful consideration regarding how their shares are represented and traded. The competitive landscape has also intensified, with Nasdaq reportedly encouraging companies to object to the OKXICE initiative, emphasizing concerns about liquidity fragmentation and market structure.