Six More Firms Oppose Tokenized Stock Listings on OKX-ICE Platform

According to a Reuters report published last Friday, the OKXICE platform, which aims to offer tokenized versions of US-listed stocks, has now faced objections from 22 companies in total. Recently, Wells Fargo, Arm Holdings, and Intuit joined Microsoft and Alphabet (Google’s parent company) in expressing their resistance to tokenize their stock listings over the past week.

Interestingly, out of these companies, 16 are listed on Nasdaq, while just six have shares trading on the NYSE. In September, Nasdaq issued guidance advising issuers who might consider utilizing the SEC’s innovation exemption to trade tokenized stocks, cautioning them to be wary of participation. They highlighted that the impacts on liquidity, price discovery, and long-term shareholder value may only become clear after the experiment is underway.

In a Tuesday interview with Cointelegraph, Andrew Cuomo, the co-chair of OKXICE and former governor of New York, said the company anticipates more firms will object, as many prefer to avoid being the first to pilot this tokenized stock framework. When filing with the SEC earlier this month, the venture proposed listing tokenized shares for 62 companies.

Cointelegraph contacted Intuit for comments regarding their decision to opt out of the tokenization project but has yet to receive a response. Representatives from Wells Fargo and Arm Holdings declined to provide comments.

The increasing number of companies opposing tokenization of their stocks on the OKX-ICE platform highlights growing caution among issuers about adopting this new financial technology and its potential implications for market dynamics and shareholder interests.