TheBlock
OKXICE, a joint venture between OKX and NYSE parent Intercontinental Exchange, plans to launch its tokenized securities venue on Nov. 23 under the SEC's five-year innovation exemption. The companies say they have confirmed 70 assets from issuers including Coinbase, Circle and Robinhood, as well as 59 exchange-traded funds. A Nov. 5 filing showed 67 companies had opted out, including Meta, Tesla, Netflix, Costco and Home Depot.
Why it matters
The SEC exemption is intended to bring US capital markets on-chain without requiring venues to register as traditional exchanges. It also allows issuers to prevent their shares from trading on particular venues.
OKXICE will be available to US customers with a CeDeFi Wallet who have completed onboarding. Andrew Cuomo, the former New York governor and OKXICE co-chair, said the venture had an opportunity to build the future of finance on-chain in America with investor safeguards.
Market impact
Issuer participation is a key constraint on the venue's potential range of tokenized stocks. Applied Optoelectronics said it opted out partly because it was unsure how tokenization would affect its share price, liquidity and volatility, and was concerned investors might misunderstand its involvement.
Nasdaq, which has partnered with Kraken on tokenization, also plans to opt its own stock out of tokenized securities venues. Its chief legal and regulatory officer, John Zecca, warned that trading outside the National Market System's data, reporting and transparency framework could fragment markets.
Frequently asked questions
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What does the SEC innovation exemption allow OKXICE to do?
The five-year exemption is intended to bring US capital markets on-chain without requiring venues to register as traditional exchanges. It also lets issuers opt their shares out of trading on particular venues.
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How many assets and ETFs has OKXICE confirmed?
OKX and ICE said they had confirmed 70 assets from issuers including Coinbase, Circle and Robinhood, as well as 59 exchange-traded funds.
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Which companies have opted out of trading on OKXICE?
A Nov. 5 filing showed 67 companies had opted out, including Meta, Tesla, Netflix, Costco and Home Depot.
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What do US customers need to access the venue?
The companies said US customers need a CeDeFi Wallet and must complete onboarding to use the OKXICE venue.
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Why has Nasdaq raised concerns about tokenized securities venues?
Nasdaq's John Zecca warned that trading outside the National Market System's market data, reporting and transparency framework could fragment markets. Nasdaq plans to opt its own stock out of tokenized securities venues.
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