38 companies oppose the tokenization of OKXICE stock trading; NASDAQ is accused of lobbying listed companies to raise objections

It is reported that NASDAQ once encouraged companies listed on its exchange to oppose the tokenization of their stocks through OKXICE. As the number of objections from companies against this proposed blockchain stock market rose to 38, the related controversy has further expanded.

• It is alleged that representatives from NASDAQ once encouraged listed companies to oppose tokenization transactions conducted through OKXICE.
• A notice from the project on October 28th indicated that 38 companies had raised objections, including Walmart, Eli Lilly, Carnival, and Cigna.
• Nasdaq did not directly respond to the allegations, but reiterated its support for its issuer-centered tokenization model.
• According to the rules of the U.S. Securities and Exchange Commission (SEC), companies have 30 days to object to unrelated third parties tokenizing their stocks on specific platforms.
• Nasdaq is working with Kraken to develop another model, while Canton Strategic plans to launch related services on November 2nd through TSV.

According to Jacquelyn Melinek, an executive from a NASDAQ-listed company stated that a representative from the exchange contacted the company and advised them to file an objection. It is claimed that this representative also offered to arrange a teleconference to explain the reasons against the proposed trading platform.

At the time of this accusation, the joint venture OKXICE established between cryptocurrency exchange OKX and Intercontinental Exchange (Intercontinental Exchange), the parent company of the New York Stock Exchange, was preparing to launch 24/7 trading of tokenized U.S. stocks.

According to reporter Eleanor Terrett, NASDAQ refused to comment directly on the aforementioned contact.

Nasdaq faces scrutiny due to objections to the tokenization of OKXICE

In its response, NASDAQ stated that it opposes tokenized stock trading platforms that operate outside of the existing market structure.

A spokesperson said about Terrett: "We are still committed to tokenization and are actively building this future through Nasdaq Equity Token. This model is issuer-centric, integrating the advantages of tokenization into existing market frameworks."

Nasdaq stated that it does not intend to operate a tokenized securities trading venue ( TSV ) based on the temporary innovation exemption of SEC . Instead, the exchange is collaborating with Kraken to develop another tokenization model, with the goal of launching it in the second quarter of 2027.

In addition, NASDAQ denied participating in a Wall Street Journal ad related to tokenization and stated that it had not authorized the use of its published materials or related QR codes.

According to reports from Terrett, among the 38 companies that officially oppose OKXICE, 23 are listed on NASDAQ.

Wal-Mart and Eli Lilly join the growing camp of opposition

A public notice released on October 28 by OKXICE indicated that Walmart, Eli Lilly, Carnival, Arcos Dorados, and Cigna are the latest companies to submit objections.

On October 27th, the list of opponents included 33 companies, which increased to 38 by the next day. Companies that raised objections earlier included Microsoft, Alphabet, Intel, AMD, JPMorgan Chase, and Goldman Sachs.

As previously reported by crypto.news, in the notice dated October 15, the exchange only disclosed 9 issuers that raised objections. Therefore, the latest documents show that the speed at which corporate objections are accumulating is quite fast.

The proposal initially submitted on October 4th listed 62 companies, corresponding to 63 stock codes. However, not all of the companies that later raised objections were included in the initial list.

Neither the notice dated October 28th nor the objections recorded therein provide an explanation as to why each company refused this proposed transaction arrangement.

JPMorgan Chase previously stated regarding CoinDesk, that raising objections does not mean they will not participate in tokenization projects in the future. The bank mentioned that they wish to carefully consider how their shares will be represented and traded.

SEC The rule allows the company 30 days to raise objections.

According to the exemption regulations issued by SEC on September 17th, eligible platforms can provide tokenized trading of U.S. stocks as licensed automated market makers, without the need to register for such activities with traditional stock exchanges.

When a unrelated third party tokenizes the shares of a company, the platform must notify the issuer before the transaction begins.

The company may subsequently submit a written objection within 30 natural days from the date of receipt of the notice. If the objection is raised within the prescribed period, the specific platform shall not conduct any related stock transactions under the exemption.

This command does not stipulate a similar “late objection” procedure that would be applicable after the initial deadline expires. Therefore, if the issuer misses the deadline, they will not be able to rely on the original objection mechanism to prevent the transaction thereafter.

This restriction is aimed at specific platforms and third-party tokenization arrangements, and it does not prohibit companies from initiating the tokenization of their own shares in other places.

OKXICE proposes to use a licensed Uniswap v4 liquidity pool on X Layer; the relevant tokens are backed by underlying stocks held by brokerage traders.

Canton Strategic Plans to Launch Another Tokenized Stock Solution

Another route is emerging through Canton Strategic Holdings. The company announced that it plans to provide its stock trading on TSV LLC via Canton Network.

In a announcement on October 29th, the company stated that, subject to meeting regulatory and operational requirements, trading could potentially begin as early as November 2nd.

The transfer agency Fairmint registered at SEC will be responsible for this tokenization process led by the issuer.

Unlike tokenization involving unrelated third parties, this arrangement involves direct participation from the company, therefore it does not require a 30-day issuer objection process.

Canton Strategic indicates that its tokenized stocks will retain the rights of traditional shareholders, including voting rights and distribution rights. TSV plans to support trading through an automated market maker pool, and will also implement identity verification and restrictions for participating wallets.