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- According to the notice from OKXICE TSV on October 30th, another 12 companies have opposed the trading of their stocks on this platform, including Nvidia, Costco, and Nike. This is the largest group so far.
- The total number of companies opposing has risen from 9 on October 15 to 50, covering industries such as technology, finance, retail, healthcare, and energy.
- According to the innovation exemption of SEC, as long as the company raises objections in a timely manner, the trading venue cannot list the company's shares that have been tokenized by a third party.
Even Nvidia does not wish for their stocks to appear on the tokenized stock trading platforms planned to be launched by OKX and ICE.
This chip manufacturer is one of the 12 new "opponents to the issuer" added in the Friday update notice by OKXICE TSV. Other companies include Costco, Nike, Micron, CrowdStrike, Palo Alto Networks, Reddit, Hewlett Packard Enterprise, Corning, Bloom Energy, IREN, and USA Rare Earth. With these additions, the total number of opposing companies has reached 50.
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This is the largest number of additions in a single instance to date. On October 28th, the list included 38 entities; at that time, Walmart and Eli Lilly joined the list. However, on October 15th when the first group of opponents appeared, the list only contained 9 entities. Since then, the number has more than quintupled.
The newly joined companies span across chip, cybersecurity, retail, and energy sectors. Nvidia, Micron, and Corning appear on the list alongside hardware peers such as AMD, Intel, and Broadcom; CrowdStrike and Palo Alto Networks have also drawn in cybersecurity giants to join the list. IREN is a Bitcoin mining company that later expanded into AI cloud computing, which is why it is also included in the list.
According to the innovation exemption of SEC – which institution introduced this arrangement in September, after Clarity Act encountered obstacles in the Senate – trading venues must notify the companies in advance before providing tokenized versions of stocks by unrelated third parties. If a company raises objections in writing within 30 days, the trading venue cannot make those stocks available for trading, as stipulated by the orders of SEC. Such objections apply only to that particular trading venue.
OKXICE TSV is a joint venture jointly owned 50% by Intercontinental Exchange, the parent company of the New York Stock Exchange, and OKX US Holdings. The venture plans to enable approved users to trade tokenized US stocks around the clock. Transactions will be conducted through the licensed Uniswap pool on the XLayer blockchain of OKX, and will be paired with stablecoins such as USDC.
There was no opposition to the company's explanation of its decision, but Nasdaq provided a possible reason when choosing to exclude their own shares from this exemption.
A spokesperson told The Wall Street Journal that Nasdaq does not wish for their shares to be traded on a trading venue that cannot display the best price in real-time and that does not report transactions to the consolidated market feed.
In addition, Crypto, in, and America reported that Nasdaq may have been behind the scenes pushing for the company to withdraw from this joint venture plan with OKX-ICE. "Our Nasdaq representatives contacted us, mentioning OKX going public, and suggested that we should raise objections, stating that they would arrange a teleconference to discuss the reasons," an executive from a Nasdaq listed company told the media. "Nasdaq certainly played a role in it," the executive is said to have stated.
The notice from OKXICE acknowledges that the platform is not subject to the Regulation NMS requirements designed to ensure that investors receive the best public quotes. The notice also warns that there are still unresolved issues regarding the trading reports and best execution on the platform by brokerage dealers.
Some of the biggest companies in the market, including Apple, Tesla, and Amazon, are still not on the list.
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