- Six more firms including Wells Fargo, Cisco, and Marvell have objected to trading their shares on OKXICE TSV, bringing the total to 22.
- The joint venture between ICE and OKX plans tokenized U.S. stock trading under the SEC’s innovation exemption, with risks including no circuit breakers beyond halts.
- The venue warns of no protections against transaction reordering and smart contract upgrades without advance notice to users.
The list of companies objecting to the trading of their shares on the planned tokenized stock venue OKXICE TSV has grown to 22, with six new names added in an updated public notice dated Oct. 23.
Wells Fargo, Cisco Systems, and Marvell Technology are among the latest objectors, joining Microsoft, Alphabet, and Goldman Sachs. The notices do not explain the companies’ reasons or what effect an objection has on trading eligibility.
OKXICE TSV is a 50-50 joint venture between Intercontinental Exchange, which owns the NYSE, and OKX‘s U.S. holding company. It plans to enable 24/7 trading of tokenized U.S. stocks through Uniswap v4 liquidity pools on OKX‘s XLayer blockchain, paired with stablecoins such as USDC.
The venue operates under the SEC’s innovation exemption, announced in September after the Clarity Act stalled in the Senate. It can list shares tokenized by issuers themselves or by outside parties.
However, the latest notice spells out significant risks. The venue does not use circuit breakers beyond pausing when the underlying stock is halted.
It also has no policies addressing maximal extractable value, the profit traders can capture by reordering transactions on a blockchain. Administrators can upgrade smart contracts without advance notice to users.
Consequently, broker-dealers face unsettled questions about trade reporting and best execution, which could limit participation and thin out liquidity. The IMF recently found demand for tokenized stocks but warned the market remains volatile and illiquid.
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