Wells Fargo, Arm and Intuit Join Resistance to OKXICE Tokenized Shares
Tokenized shares on the planned OKXICE platform face new hurdles as Wells Fargo, Arm Holdings, and Intuit join a growing list of objecting companies.
Wells Fargo, Arm and Intuit Join Resistance to OKXICE Tokenized Shares
Tokenized shares on the planned OKXICE platform face new hurdles as Wells Fargo, Arm Holdings, and Intuit join a growing list of objecting companies.
Growing Opposition to Tokenized Shares
A growing number of major companies are pushing back against plans to list their equities on a new blockchain-based trading venue. According to a regulatory document reviewed by Reuters, six additional firms have objected to having their tokenized shares traded on OKXICE, a planned platform backed by crypto exchange OKX and Intercontinental Exchange.
The latest rejections include prominent names such as Wells Fargo, Arm Holdings, and Intuit. These objections bring the total number of dissenting companies to 22, complicating ongoing plans by OKX and ICE to offer tokenized versions of 63 different stocks.
Regulatory Framework and Company Rights
OKX and ICE filed with the US Securities and Exchange Commission on October 5 to launch the platform under a new five-year innovation exemption. This regulatory framework allows eligible platforms to trade tokenized stocks without adhering to certain traditional exchange requirements.
However, the rules mandate that issuers must receive notification before their equities are tokenized and retain the right to block proposed listings by submitting an objection. Although the regulatory filing does not specify the exact reasons behind the corporate pushback, the framework explicitly allows companies to opt out.
Leadership Response and Market Context
Andrew Cuomo, former New York governor and co-chairman of OKXICE, described the rejections as an expected response to the introduction of tokenized equity trading. Speaking to reporters, Cuomo called the opposition a natural reaction and noted that the venture anticipated some firms would wait to see how the market develops before participating.
The platform aims to facilitate continuous trading and faster settlement of US equities utilizing blockchain infrastructure. Despite the friction, the SEC’s exemption requires that any issued tokenized shares must provide investors with standard traditional equity rights, including voting capabilities and dividend payments.
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