OKX, NYSE Parent ICE Seek US Tokenized Stock Trading Platform, Starting With 63 Shares
Summary
- OKX and ICE's joint venture, OKXICE LLC, said it filed paperwork with the SEC to launch a tokenized stock trading platform in the US.
- OKXICE said it plans to use the SEC's innovation exemption to win approval to tokenize and trade shares of 63 NYSE-listed companies.
- The SEC's move is set to intensify competition among crypto companies to tokenize stocks in the US, with a range of business models likely to emerge.
Forecast Trend Report by Period
Global crypto exchange OKX and Intercontinental Exchange Inc., the parent company of the New York Stock Exchange, are seeking to launch a platform in the US for trading tokenized stocks.
Bloomberg reported on October 4 that OKX and ICE's joint venture, OKXICE LLC, filed paperwork with the US Securities and Exchange Commission to launch the platform. It plans to seek initial approval to tokenize and trade shares of 63 companies listed on the NYSE.
The filing follows the SEC's introduction last month of a temporary "innovation exemption" allowing blockchain-based securities to trade in the US. Under the new framework, issuers can request exclusion from tokenization and are given a 30-day window to object before trading begins.
OKXICE is among the first companies seeking to operate a tokenized securities market under the SEC's innovation exemption. Tokenized securities must carry the same shareholder rights as conventional stocks, including dividends and voting rights.
ICE participated in an investment in March that valued OKX at $25 billion. At the time, the two companies also agreed to cooperate in the US-regulated crypto futures market, while OKXICE combined OKX's blockchain infrastructure with ICE's market technology.
"It is hard to deny that blockchain, liquidity pools and smart contracts are a more efficient way to trade stocks," OKXICE Co-Chair Andrew Cuomo said. He added that the model makes 24-hour global stock trading possible and offers significant advantages.
The SEC's move is set to intensify competition among crypto companies in the US to tokenize stocks. Business models could range from working directly with listed companies to tokenize shares to third-party token issuance without the participation of the original issuer.
The launch timing for OKXICE's service will be determined after the 30-day issuer objection period ends and the company satisfies related requirements.
