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

Intel, Oracle, IBM, and IonQ have joined the growing list of entities opposing OKX–ICE tokenized stock plans, bringing the total to 26.

This latest addition to the objections highlights issuer caution regarding the SEC’s five-year Innovation Exemption. This exemption permits round-the-clock blockchain trading but grants companies 30 days to prevent their inclusion.

The resistance suggests issuers are adopting a wait-and-see stance, desiring greater clarity on shareholder protections and the advantages of tokenized trading before participating, according to industry experts previously cited by CoinDesk.

The four firms cited—IBM, Oracle, Intel, and IonQ—have declined to participate in plans by the crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to offer blockchain-based trading of their shares.

These companies were mentioned in an updated public notice from OKXICE, the joint venture of the two firms, dated Monday, Oct. 26. They join earlier objectors such as Microsoft, Alphabet, Goldman Sachs, Cisco, and Wells Fargo.

The expanding roster presents a challenge for OKXICE and the SEC’s new framework for tokenized stock trading: establishing a market that issuers are willing to adopt.

OKXICE issued its initial public notice on Oct. 4, detailing plans to utilize Uniswap v4 liquidity pools on OKX’s XLayer blockchain, with transactions settled in stablecoins.

Under the framework, venues must inform issuers and afford them 30 days to object before offering tokenized versions of their shares.

The venue intends to use automated market makers, which are software executing trades through asset pools instead of matching buyers and sellers via a conventional order book.

The notice also indicated uncertainty about whether tokenized shares held in self-custodied wallets would receive SIPC protection if the tokenizer’s broker-dealer failed.

Furthermore, the platform requires that all trades be fully funded, prohibiting margin or borrowing.

Andrew Cuomo, OKXICE’s co-chairman and former New York governor, previously characterized the objections as anticipated, noting that many companies prefer to “wait and see how it goes rather than be the first to participate,” during a press call last week.

Seven additional companies, including JPMorgan Chase, Coca-Cola, and Dell, have since objected to the planned OKX-ICE tokenized stock venue, raising the total to 33, according to an Oct. 27 notice.

Under the SEC’s innovation exemption, a timely written objection prevents the venue from listing a third-party tokenized version of a company’s stock, though this only affects that specific venue.

OKXICE’s original Oct. 4 notice proposed 63 tokenized stocks from 62 companies, and some objectors, like Wells Fargo and Arm, were not on that initial list.