The list of companies pushing back against OKX-ICE's tokenized stocks has grown considerably since last week. An updated public notice stated as at October 19, sixteen companies have objected, up from nine just five days earlier. Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald's and Western Digital are among the latest additions.
Of the 62 companies originally listed on the venue, 15 have now objected, leaving 47 without a publicly disclosed objection. Cerebras is the sixteenth company on the notice, although it was never included on OKXICE's original list. Under the innovation exemption issued on September 17, a trading venue must notify a company in writing before listing a token created by a third party to represent its shares. Trading cannot begin until at least 30 days after that notice. If the company objects in writing during that period, the venue cannot list the tokenized version of its stock. If it stays silent, the listing can go ahead.
Venues also have five business days to confirm a dissaproval after receiving it. But the process applies separately to each venue, meaning a dissaproval against OKX-ICE do not prevent another platform from tokenizing the same company's shares. The public notice does not explain why the companies objected or when they submitted their objections.
Nasdaq has taken a matching position on the tokenization of its own stock. In its FAQ, the exchange says it will opt out of third-party tokenized stock venues. It argues that companies should issue their own tokens and decide where those tokens can be traded.
On X on October 19, Figure co-founder Mike Cagney said ten companies had opted out, one more than the October 15 notice listed. He also questioned whether the product would attract much interest from traders. The SEC's order prevents these venues from extending credit, borrowing shares or allowing tokens to be used as collateral.
That alone rules out leverage and stock lending, two features that could otherwise make tokenized stocks more appealing. Cagney acknowledged, though, that OKX's large customer base could give it an advantage.
It's also worth separating OKX's existing offshore stock tokens from what OKX-ICE plans to offer. OKX's offshore products give customers exposure to share prices but no ownership or voting rights, and US customers cannot access them. OKX-ICE's token on the other hand, must be backed by actual shares on a one-to-one basis and include dividend and voting rights.
OKXICE told the Wall Street Journal it still intends to list dozens of stocks. Co-chair Andrew Cuomo had also said earlier this month that objections were expected. The company has yet to announce a launch date.
For now, the main thing to watch is the number of companies listed as objecting in each updated notice. That figure has increased with every revision so far.