Seven more companies have appeared on OKXICE’s list of issuers objecting to third-party tokens tied to their shares, bringing the total to 16 as the venture prepares a stock-token trading venue.
OKXICE LLC, a venture between crypto exchange OKX and New York Stock Exchange owner Intercontinental Exchange, named Microsoft Corporation, Alphabet Inc. and The Goldman Sachs Group, Inc. among the additional companies in its Oct. 19 notice. Its Oct. 15 notice had listed nine issuers that objected. The notices do not establish when the seven additional objections were submitted.
The planned venue, OKXICE TSV, would offer trading in tokenized U.S. shares at all hours. Its proposal provides one path for third-party tokens and another for tokens created by the stock issuer or on its behalf. The 16 objections concern the independent-party route; they do not themselves rule out company-issued tokens.
Under the Securities and Exchange Commission’s temporary framework, trading in an unaffiliated party’s token can begin only after 30 calendar days have passed from the issuer’s receipt of written notice. An issuer that objects in writing by day 30 bars that particular token from trading on the venue under the exemption. Tokens made by or for the issuer are subject to a separate route.
OKXICE co-chair and former New York Gov. Andrew Cuomo called the objections “a very natural response” during an Oct. 20 press call, CoinDesk reported. Cuomo said he expected some issuers to watch the venue develop before deciding whether to participate. OKXICE’s latest notice does not give the companies’ reasons for objecting.
Under OKXICE’s third-party proposal, each token would entitle its holder to one share held through a registered broker-dealer, including its dividend and voting rights. Balances in liquidity pools would determine token trading prices, which could differ from prices for the underlying shares on conventional exchanges. OKXICE’s notice also says liquidity providers can incur losses.
The SEC requires a public notice at least 30 calendar days before a venue begins operating. Its order calls for a revised notice within five business days of any further timely issuer objection. OKXICE’s Oct. 19 notice gives no launch date.
