Walmart and Eli Lilly Join Growing Opposition to OKXICE Tokenized Stocks

Walmart and Eli Lilly have joined a significant number of companies opposing the tokenized stock trading initiative on OKXICE, a collaboration between the crypto exchange OKX and the Intercontinental Exchange (ICE). This brings the total number of disclosed objections to 38, with over half of the initial roster of proposed stocks now facing resistance.

According to an updated public notice dated October 28, the latest objections follow similar moves by major corporations including JPMorgan Chase, Microsoft, and Coca-Cola. The objections highlight a growing caution among companies regarding the implications of having their shares traded through third-party tokenization.

OKXICE aims to facilitate round-the-clock trading of tokenized U.S. stocks using automated market maker liquidity pools and stablecoin settlements. The initiative operates under the SEC’s five-year Innovation Exemption, which allows certain platforms to test blockchain-based securities trading under specific conditions.

Companies have a 30-day window to object to the tokenization of their shares. If they do not object within that period, their shares could be made available for trading as tokenized assets. However, the framework does not provide a mechanism for companies to withdraw their non-objection later.

As the number of objections rises, questions about the pace at which OKXICE can expand its offerings emerge, particularly as companies weigh the risks associated with tokenized stock trading. In contrast, a competing venue on the Canton Network is preparing to launch its own tokenized stock trading model, which does not require the same objection process.