Broadcom, CoreWeave, and Cerebras Systems are among the many 9 firms which have objected to their tokenized inventory variations being traded on the OKXICE platform.
Other objectors embody AppLovin, Applied Digital, Verizon, Rocket Labs, Applied Optoelectronics, and UnitedHealth Group. The OKXICE platform is co-owned by Intercontinental Exchange (ICE) and crypto change OKX. ICE can also be the NYSE (New York Stock Exchange) mother or father firm.
The platform filed to tokenize the highest 63 U.S. stocks by way of permissioned Uniswap V4 swimming pools underneath the SEC’s ‘Innovation Exemption’ framework. Under the foundations, firms had 30 days to object to the proposal, or silence could be deemed consent.
That’s the window Broadcom and others used to opt out of the OKX-backed tokenization push. Applied Optoelectronics mentioned it was uncertain concerning the potential affect of the transfer on its conventional share worth, liquidity, and volatility.
Nasdaq additionally slammed the transfer, elevating questions on how the SEC will push its tokenization agenda.
Nasdaq opposes the OKX tokenized stocks mannequin
Nasdaq, a NYSE rival, has opted out of the SEC’s permitting its shares (NDAQ) to commerce on tokenized inventory venues (TSVs), per its FAQs.
As an issuer ourselves, having rigorously reviewed and weighed these present issues of the Innovation Exemption, we intend for Nasdaq, Inc. (Nasdaq: NDAQ) to opt out of TSVs.
A Nasdaq spokesperson informed The Wall Street Journal (WSJ) they’re dedicated to tokenization. But maintained that Nasdaq doesn’t need its tokenized inventory to commerce on venues that don’t show the “best prices in real time.”
The OKX-backed platform is only one of the TSVs. Nasdaq fears TSVs might distort worth discovery and fragment liquidity in the event that they sit outdoors the National Market System (NMS). The IMF raised related liquidity considerations.
According to Nasdaq, firms ought to situation their very own tokenized stocks and have extra management over the place and how they commerce. Simply put, it opposes the OKXICE mannequin. The mannequin permits TSVs to supply ‘wrappers.’ In return, a 3rd social gathering buys actual shares as backing for the issued tokenized stocks.
Interestingly, Nasdaq has partnered with Kraken to supply tokenized stocks. But their mannequin permits firms to immediately situation the tokens. So, two rivals are pushing for 2 totally different fashions for tokenized stocks.
It stays to be seen whether or not others will oppose the transfer and which mannequin can be adopted by the market.
In the meantime, tokenized stocks have hit $3.4B in market provide and over $10B in month-to-month switch quantity. That interprets to 1% of stablecoin provide and robust adoption regardless of rising opposition from choose conventional firms and exchanges.
Final Summary
- Nine firms opted out of OKXICE’s deliberate tokenized inventory buying and selling, citing liquidity and worth volatility risks
- Nasdaq requires a mannequin the place firms have extra management over their tokenized stocks and the place they’re traded.
