- 50 companies have objected to OKX-ICE’s proposal, including 43 of its original 62 proposed issuers, citing concerns over liquidity, custody and shareholder rights.
- Nasdaq is pursuing an alternative with Kraken through the Nasdaq Equity Token, aiming to bring stocks onchain under existing securities regulations.
- The SEC exemption faces questions ahead of the November 3 deadline, while rival TSV plans to launch tokenized Canton Strategic Holdings shares with issuer backing.
Wall Street’s tokenization battle is intensifying as 50 companies challenge OKX-ICE’s plan to tokenize their publicly traded shares. The objections emerged ahead of the November 3 deadline under the SEC’s Innovation Exemption. Crypto in America reports that Nasdaq representatives may have encouraged listed companies to oppose the proposal.
50 Companies Object to OKX-ICE Tokenization Plan
As of Monday, 50 companies had filed objections, including JPMorgan, Walmart, Nvidia, Coca-Cola and Goldman Sachs. Notably, 43 appeared on OKX-ICE’s original list of 62 companies. This means nearly 70% of its proposed issuers have objected.
Companies cited concerns about share prices, liquidity, volatility, shareholder rights, custody and market transparency. However, Crypto in America reported that Nasdaq may also have influenced some objections.
An executive at a Nasdaq-listed company said a Nasdaq representative suggested filing an objection. The representative also offered a call explaining the exchange’s position. A Nasdaq spokesperson declined to address the allegation but reiterated opposition to the TSV framework.
Nasdaq and Kraken Pursue an Alternative
Nasdaq has argued that tokenized securities venues are not the best approach. The exchange partnered with Kraken earlier this year to develop the Nasdaq Equity Token. The project aims to bring stocks onchain within existing securities regulations.
Nasdaq also denied involvement in a Wall Street Journal advertisement urging companies to reject tokenization. A conservative-leaning nonprofit paid for the advertisement, whose ultimate funding source remains unclear. Nasdaq said it neither contributed to the group nor authorized its FAQ’s use.
Andrew Cuomo, who leads the OKX-ICE venture, described the competition as a direct contest. Speaking Thursday, he said the advertisement meant “game on.”
SEC Exemption Faces Questions as Deadline Arrives
The objections have raised questions about the SEC experiment’s ability to attract issuers. Former SEC Commissioner Hester Peirce previously expressed expectations of broad interest. Meanwhile, Figure CEO Mike Cagney questioned whether widespread opt-outs would undermine the sandbox.
Nineteen companies on OKX-ICE’s original list had not objected. Its initial 30-day notice period expires November 3, although individual objection windows may vary.
Meanwhile, rival TSV LLC expects tokenized Canton Strategic Holdings shares to begin trading as early as Monday. Unlike OKX-ICE, TSV has the issuer’s backing and avoids the separate objection process. However, its launch initially involves just one company affiliated with its Canton Network.
