Tokenized stock venue on Canton could beat OKX–ICE to first trade under SEC framework
Canton Strategic Holdings (CNTN) plans to begin trading its tokenized shares as early as November 2, potentially beating the OKX-ICE venture to the first trade under SEC's new tokenization framework.
The Nasdaq-listed company has engaged SEC-registered transfer agent Fairmint to issue and maintain official ownership records for its tokenized shares. This arrangement takes a different approach from the third-party tokenization model that has drawn objections from 33 companies to OKX-ICE's proposed listings.
Avoiding issuer objections
Canton Strategic Holdings is sponsoring the tokenization itself, allowing TSV to bypass the 30-day issuer notice-and-objection process that applies when unaffiliated parties tokenize a company's stock. This removes uncertainty over whether the company will block trading.
We were the first to formally notify the SEC of our intent to operate a tokenized securities venue, and we wanted our first listing to set the standard.
Innovation Exemption framework
Both TSV and OKX-ICE intend to operate under the SEC's five-year 'Innovation Exemption,' which allows qualifying platforms to trade tokenized U.S. stocks through permissioned automated market maker pools. TSV published its initial venue notice on Sept. 23, before OKX-ICE's Oct. 4 notice, and the waiting period has already elapsed.
Tokenization creates more efficient access to equity markets for investors and greater transparency for issuers, and the SEC's Innovation Exemption has set up the framework to bring tokenized U.S. equities onshore.
TSV will use the Tradecraft protocol on Canton to offer round-the-clock trading to approved institutional and retail participants, with atomic settlement where shares and payment change hands together. Token holders will receive the same rights as traditional investors.
Related
