Crypto: OKX and NYSE owner launch tokenized stock exchange
A common tokenized securities platform with over 70 announced assets and opposition from multiple companies.
Quick Look
- OKX and Intercontinental Exchange plan to launch OKXICE on November 23 for tokenized securities.
- More than 70 assets are announced, but 67 companies oppose the tokenization of their securities by third parties.
AI-generated summary
Why It Matters
OKX and ICE plan a joint tokenized securities platform, OKXICE, targeting a November 23 opening.
OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, are reportedly targeting November 23 to open their common tokenized securities platform, called OKXICE. The plan provides for ongoing trading for eligible US customers. The announced catalog brings together more than 70 titles, but the list of assets actually negotiable upon opening remains to be confirmed.
OKXICE wants to offer stocks and ETFs continuously
The announced catalog combines shares of companies in the crypto sector and ETFs from Direxion, a manager specializing in particular in leveraged funds and inverse funds. The latter seek to evolve opposite to their benchmark index. With 59 funds announced, Direxion alone represents most of the catalog presented. The platform plans to open access to US OKX customers who meet its criteria and have completed their registration.
According to the operation described, each token would represent an existing security, held on a unit-for-unit basis through a registered broker. Exchanges would take place on X Layer, the OKX network, with access restricted to authorized participants. Continuous trading would extend the hours at which these customers can trade the securities offered. However, available liquidity may vary depending on the time and number of participants.
Issuers oppose the tokenization of their securities
The project would be part of an SEC exemption regime that would allow issuers to object to the tokenization of their securities by a third party. According to information reported in a November 5 regulatory filing, 67 companies have exercised this option, including Meta, Tesla, Netflix, Home Depot and Costco. Their objections concern the representation of their titles on these platforms.
Nasdaq also expressed reservations about trading tokenized securities outside of the National Market System, the framework that organizes the flow of orders and dissemination of data in the US equity market. His fear concerns the distribution of liquidity between several platforms. For the same title, scattered volumes can make prices more difficult to compare and reduce the quantity available at a given price.
What to Watch
AI outlook — possibilities, not facts
Opening of the OKXICE platform on November 23
Possible · Within days
Open Questions
- Which assets will actually be tradable upon opening?
- How will the SEC handle issuer objections?
