Intel, Oracle, IBM join growing list of firms objecting to OKX–ICE tokenized stock plans

Twenty-six issuers have objected to OKXICE offering tokenized versions of their shares. The latest four are IBM, Oracle, Intel and IonQ. Earlier objectors include Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo. Their decisions show that many companies remain cautious about joining this new market.

An objection uses the SEC framework’s opt-out process. Before offering a company’s tokenized shares, a venue must notify the issuer and wait 30 days. If the issuer objects, OKXICE cannot include that company’s shares in the proposed offering. The objection therefore prevents that issuer’s stock from entering the planned blockchain market.

The objections may be temporary caution rather than permanent rejection. Companies may want more information about investor protections, trading liquidity and possible benefits before participating. Andrew Cuomo said many issuers would rather wait and see how the system performs than be first to join.

Tokenized stocks represent shares in a digital form that can trade on a blockchain. They are intended to connect stock ownership or trading with crypto-style infrastructure. The article focuses on blockchain-based versions of public companies’ shares, rather than ordinary shares moving through a traditional exchange’s familiar systems.

Ordinary stock trading usually relies on regulated exchanges, brokers and order books that match buyers with sellers. OKXICE proposes a different structure. It would use Uniswap v4 liquidity pools on OKX’s XLayer blockchain. Automated market makers would execute trades through pools of assets instead of matching orders in a conventional order book.

The difference could make trading continuous, but it also creates unanswered questions. The article highlights concerns about shareholder protections, thin liquidity and trading outside familiar market structures. Tokenization might bring new demand, especially from overseas investors, but issuers are still assessing whether the advantages outweigh the risks.

Twenty-six companies have objected to OKXICE’s proposed tokenized-stock offerings. That total includes the newest objections from IBM, Oracle, Intel and IonQ. It also includes Cerebras Systems, Arm Holdings and Wells Fargo, which were not part of the original proposed roster.

OKXICE initially listed 62 companies in its public proposal. Of those original selections, 23 have objected. CoinDesk’s tally therefore puts objections from the initial roster at about 37%. The broader total is higher because some objectors were outside that initial list.

The figures show a substantial early barrier for the joint venture. More than one-third of the original roster has objected, even though the project is preparing to test the SEC’s new framework. Companies may be choosing caution because objecting costs nothing, while remaining silent permits trading to begin without a later withdrawal mechanism.

The Innovation Exemption is a five-year SEC framework for qualifying venues to test new blockchain-based stock-trading systems. It gives those venues room to experiment with tokenized shares while using a defined process for notifying companies. The framework matters because it creates a regulatory path for a market that does not follow the usual exchange model.

Under the process, a venue must notify each issuer and give it 30 days to object. If the company stays silent, its tokenized shares may be offered. If it objects, the venue must leave those shares out. The exemption therefore gives issuers a clear choice before trading starts.

The framework permits round-the-clock blockchain trading because qualifying venues can operate this experimental system beyond conventional market hours. The article does not describe additional limits on those hours. It does show why issuers are cautious: continuous trading may expand access, but it could also produce thin liquidity outside familiar market structures.

OKXICE’s proposed system combines decentralized trading infrastructure with tokenized shares. The joint venture plans to use Uniswap v4 liquidity pools on OKX’s XLayer blockchain. This would let trades occur through blockchain-based pools rather than through a traditional exchange’s standard order book.

The pools would rely on automated market makers, or software that executes trades against pooled assets. Buyers and sellers would not need to be matched directly by conventional orders. Instead, the pool supplies the trading mechanism, while the blockchain records the transactions. Stablecoins would be used to settle those transactions.

This design supports the planned round-the-clock model, but it also raises practical concerns. The article notes possible thin trading and uncertainty about investor protections. OKXICE must also win issuer participation. So far, 26 companies have objected, suggesting that the proposed mechanism still faces resistance from the companies whose shares it wants to represent.

Moving stock trading onto blockchain systems could change how investors access shares and how companies monitor their market. The article says issuers want more clarity on shareholder protections and the benefits of tokenized trading. That uncertainty helps explain why companies are choosing to object before participation becomes harder to reverse.

Liquidity is another concern. OKXICE’s proposed pools would support round-the-clock trading, but TD Securities’ Reid Noch warned that demand, including from overseas investors, may not offset thin trading outside familiar market structures. Thin markets can make trading less dependable and potentially make prices harder to interpret.

The current framework also changes the decision’s timing. Objecting costs nothing, while silence allows trading to begin without a mechanism to withdraw consent later. Issuers may therefore wait for evidence about protections, liquidity and investor demand before allowing their shares onto the blockchain.

Tokenization may attract additional overseas demand because the proposed venue could offer blockchain-based trading around the clock. Investors outside the familiar market structure might gain another route to access shares. The article specifically identifies overseas investors as a possible source of added demand, although it does not guarantee that demand will materialize.

Stock markets perform several basic functions. They help companies raise capital from investors, represent ownership interests, provide a place to buy and sell those interests, and help establish market prices through trading. Liquidity matters because investors generally value being able to enter or exit positions without excessive difficulty.

The proposed system could expand access, but its benefits remain uncertain. Reid Noch said overseas demand might not offset concerns about thin trading. Issuers are also weighing shareholder protections and the unfamiliar structure. Their objections show that broader access alone has not yet made tokenized trading compelling enough for many companies.