Nvidia, Nike and 48 Other Companies Oppose OKX Stock Tokenization Plan
Nvidia, Nike, and 48 other companies have formally objected to a plan by OKX and the New York Stock Exchange parent company to trade tokenized shares on a new platform.
The number of companies objecting to the initiative has reached 50 as of Oct. 30, up from 38 on Oct. 28.
The platform, OKXICE, is a 50-50 joint venture between crypto exchange OKX and the New York Stock Exchange's parent company, Intercontinental Exchange.
Its goal is to enable tokenized versions of traditional US stocks to be traded on a blockchain, offering eligible investors an alternative to traditional brokerage platforms.
Corporate Opposition Grows
New objections were raised by major corporations including Nvidia, Nike, Costco, Micron Technology, and Reddit.
Other prominent companies raising objections include cybersecurity firm CrowdStrike, Corning, Bloom Energy, IREN, USA Rare Earth, Palo Alto Networks, Hewlett Packard Enterprise, JPMorgan Chase, Goldman Sachs, Wells Fargo, Walmart, Coca-Cola, McDonald's, Eli Lilly, Adobe, and Dell Technologies.
The regulator gave companies the option to object to any unauthorized third-party tokenization of their shares.
Regulatory Framework and Next Steps
The planned platform is based on a temporary regulatory exemption issued by the Securities and Exchange Commission (SEC) on Sept. 17.
Under this exemption, if a company submits an objection within the specified timeframe, its third-party tokenized shares cannot be offered by the platform.
The platform will be open 24 hours a day, seven days a week, once it launches.
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