CoinDesk
Walmart, Eli Lilly and three other companies have objected to tokenized stock trading plans from crypto exchange OKX and Intercontinental Exchange, the parent of the New York Stock Exchange. The additions bring disclosed objections to 38, against an original roster of 62 companies, as a rival venue prepares an issuer-sponsored listing.
The updated public notice, dated Oct. 28, also lists Carnival, Arcos Dorados and Cigna. Some objectors, including Arcos Dorados and Cigna, were not on the original proposed listing roster. Earlier objections included those from Cerebras Systems, Arm Holdings and Wells Fargo.
Why it matters
The SEC’s five-year innovation exemption allows qualifying venues to test tokenized U.S. stock trading through automated market makers. For unaffiliated third-party tokenization, venues must notify issuers, which then have 30 days to object. Under the described framework, silence permits trading to proceed, with no later mechanism for an issuer to withdraw that consent.
That structure gives companies a reason to opt out while they assess how their shares would be represented and traded, and whether the potential demand is worth participating. JPMorgan Chase said its objection does not rule out taking part in the future, while expressing support for tokenization’s potential.
Market impact
The growing objections point to a divide between third-party tokenization and issuer-sponsored models. Canton Strategic Holdings said its shares could begin trading on the Canton-based TSV marketplace as early as Monday, with Fairmint acting as transfer agent. Because the arrangement is issuer-sponsored, it avoids the 30-day objection process for unaffiliated tokenization.
The development puts issuer consent and control at the center of tokenized-equity market design. Whether venues can attract companies directly, or trade shares without their participation, will shape how this market develops.
Frequently asked questions
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How many companies have objected to the OKX-ICE tokenized stock plans?
There are 38 disclosed objections. The original proposed listing roster contained 62 companies, though some objectors were outside that roster.
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What does the SEC exemption require for unaffiliated tokenized stocks?
Qualifying venues must notify the issuer, which has 30 days to object to unaffiliated third-party tokenization.
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What happens if an issuer does not object within 30 days?
Under the described framework, trading can proceed after the issuer stays silent, with no later mechanism to withdraw that consent.
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How does Canton Strategic Holdings’ planned listing differ?
Its shares could trade on Canton-based TSV through an issuer-sponsored arrangement, with Fairmint as transfer agent. That model avoids the objection process for unaffiliated tokenization.
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Does JPMorgan Chase’s objection rule out future tokenization?
No. JPMorgan said its decision not to participate in the venue at this stage does not rule out future participation.
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