Companies
Major Companies Block Tokenization of Shares by NYSE-Backed Venture
In a significant move, 33 companies have objected to the tokenization of their shares by a joint venture between the crypto exchange OKX and the Intercontinental Exchange (ICE), which operates the New York Stock Exchange. This list includes major players such as JPMorgan Chase, Microsoft, and Goldman Sachs.
The objection count has risen from 26 to 33 in just a few days, with seven new companies, including Advanced Micro Devices (AMD), Coca-Cola, and Adobe, joining the list. The latest public notice, dated October 27, reveals that these companies have exercised their right to block third-party proposals for tokenized trading.
Under SEC regulations, companies must be notified before their stock can be tokenized by an unaffiliated third party. If a company objects within 30 days, the tokenization cannot proceed. The notice from OKXICE does not specify the reasons for these objections, nor does it provide a launch date for the proposed trading venue.
As the count of objectors continues to grow, concerns about the risks associated with tokenized trading and potential upgrades to the venue's smart contracts remain prominent. The initial proposal aimed to offer 24/7 trading of tokenized versions of over 60 major US stocks.
FAQ
What is the main issue regarding the tokenization of shares?
The main issue is that 33 companies, including major firms like JPMorgan Chase and Microsoft, have objected to the tokenization of their shares by a joint venture between OKX and the Intercontinental Exchange (ICE).
How many companies have objected to the tokenization proposal?
As of the latest public notice dated October 27, 33 companies have objected to the tokenization proposal, an increase from 26 just a few days prior.
What is the process for companies to block tokenization of their shares?
Under SEC regulations, companies must be notified before their stock can be tokenized by an unaffiliated third party. If a company objects within 30 days of notification, the tokenization cannot proceed.
What are some of the companies that have objected?
Some of the companies that have objected include JPMorgan Chase, Microsoft, Goldman Sachs, Advanced Micro Devices (AMD), Coca-Cola, and Adobe.
What concerns are associated with the tokenization of shares?
Concerns include the risks associated with tokenized trading and the potential need for upgrades to the trading venue's smart contracts, as well as the lack of clarity on the reasons for the objections.