IBM, Oracle, Intel and quantum computing company IonQ have reportedly joined the growing opposition to OKX and Intercontinental Exchange’s proposed tokenized stock platform, bringing the number of objecting issuers to 26 under the U.S. Securities and Exchange Commission’s innovation exemption.
Summary
- IBM, Oracle, Intel and IonQ reportedly joined the OKXICE tokenized stock objections.
- The reported total has climbed from 22 to 26 issuers.
- SEC rules give companies 30 calendar days to object to unaffiliated tokenization.
- Industry groups are urging regulators to replace the opt-out process with affirmative issuer consent.
According to an October 27 update from journalist Eleanor Terrett, the four technology companies have objected to having their shares tokenized through the OKXICE venture. The latest additions follow an October 23 disclosure identifying 22 objecting issuers, including Microsoft, Alphabet, Goldman Sachs and Wells Fargo.
The objections prevent the venture from offering the affected companies’ third-party tokenized shares under the exemption, provided they were submitted within the required period. They do not constitute a general ban on tokenization or prevent an issuer from developing its own blockchain-based securities.
Big tech joins opposition to OKX-ICE tokenized stocks
The latest objections bring more established technology companies into a dispute that initially involved a smaller group of issuers concerned about third-party tokenization. IBM, Oracle, Intel and IonQ join companies across technology, finance, telecommunications and healthcare that have challenged their inclusion on OKXICE’s proposed venue.
The October 23 list had already included Microsoft, Alphabet, Qualcomm, Cisco Systems, Broadcom and CoreWeave. Financial services companies Goldman Sachs and Wells Fargo were among the other objectors, demonstrating that the opposition was not limited to technology issuers.
OKXICE, a joint venture between cryptocurrency exchange OKX and New York Stock Exchange owner Intercontinental Exchange, initially identified 63 prospective securities for its planned trading platform. As crypto.news previously reported on the proposal, the venture intends to offer blockchain-based versions of U.S.-listed shares while meeting the SEC’s requirements for shareholder rights.
The platform has proposed continuous trading through permissioned liquidity pools on the X Layer blockchain. Its initial plans remain subject to operational requirements, and the objections do not establish that any affected tokenized shares have already traded.
SEC exemption gives issuers 30 days to block listings
The SEC’s September 17 innovation exemption allows qualifying Tokenized Securities Venues to trade certain blockchain-based shares through permissioned automated market makers. The temporary framework requires platforms to notify companies before offering shares tokenized by an unaffiliated third party.
Issuers have 30 calendar days after receiving the required notice to object in writing. A timely objection prevents the notifying venue from listing the affected security under the exemption, while a company’s failure to object allows the venue to proceed if the remaining conditions are satisfied.
The SEC requires qualifying tokenized stocks to provide the same rights and privileges as conventional shares of the equivalent class. Trading venues must preserve shareholder rights, observe restrictions on trading volumes and suspend token trading when the underlying shares halt on their primary exchange.
SEC Chairman Paul Atkins said when announcing the framework that the exemption would permit trading in a “permissioned environment” while the commission considered further regulatory action. The temporary relief is scheduled to expire five years after publication unless regulators modify or replace it.
Issuer consent becomes a central regulatory question
The growing objection list has renewed scrutiny of the SEC’s decision to adopt an opt-out system instead of requiring companies to approve third-party tokenization in advance. Under the current arrangement, a venue can seek to list eligible tokenized shares without affirmative issuer permission, subject to notice and the company’s right to object.
In an October 19 comment letter, the Securities Industry and Financial Markets Association urged the SEC to require affirmative issuer consent. The organization requested a centralized objection system and proposed extending the objection period from 30 to 90 days.
The group raised questions about identifying beneficial owners of tokenized securities and applying existing shareholder disclosure requirements. Those concerns form part of the SEC’s ongoing consideration of how blockchain trading venues should operate alongside established securities markets.
Previous objections from nine issuers showed that companies could block individual listings before trading began. A later update on additional opt-outs documented the growing resistance as the venture prepared its proposed market.
OKXICE faces limits on its proposed stock lineup
The exemption does not require every issuer to accept third-party tokenization, and an objection against OKXICE applies to that venue’s proposed offering. Other legally permitted arrangements, including securities tokenized by or on behalf of issuers, fall under different conditions.
The venue must meet the SEC’s technical requirements before trading begins, including using public, auditable smart contracts on a public, permissionless blockchain. Its public notices must disclose issuer objections, while individual notification dates determine when the applicable 30-day periods expire.
The October 23 public notice documented 22 objecting companies. Terrett’s October 27 report identifies four additional technology issuers, bringing the reported total to 26, although the latest revised venue register was not independently available for confirmation.
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