Nine Issuers Object to Trading Tokenized Versions of Their Shares on OKXICE

Nine companies have objected to trading tokenized versions of their shares on the proposed OKXICE venue, testing an issuer safeguard in the SEC’s temporary exemption framework.

OKXICE LLC identified AppLovin Corporation (APP), Applied Digital Corporation (APLD), Applied Optoelectronics, Inc. (AAOI), Broadcom Inc. (AVGO), Cerebras Systems Inc. (CBRS), CoreWeave, Inc. (CRWV), Rocket Lab Corporation (RKLB), UnitedHealth Group Incorporated (UNH) and Verizon Communications Inc. (VZ) as objecting issuers on Oct. 15.

Under the Securities and Exchange Commission’s Sept. 17 order, a venue must give an issuer written notice before offering third-party tokenized stock and wait at least 30 calendar days from the issuer’s receipt before trading. An objection within that period keeps the specific stock off the venue that sent notice. It does not bar tokenized shares on other platforms.

Eight of the nine companies appeared on the 63-security list OKXICE issued Oct. 4; Cerebras Systems was absent.

OKXICE is split evenly between Intercontinental Exchange Holdings Inc. and OKC USA Holding Inc. Its proposed market would use permissioned Uniswap v4 liquidity pools on XLayer instead of an order book.

The planned model calls for a registered broker-dealer to hold one underlying share for each token. Token holders would receive rights matching traditional shares, including dividends and voting rights.

The SEC order grants qualifying tokenized securities venues temporary, conditional relief from the Exchange Act’s definition of an exchange. It also gives certain liquidity providers relief from the law’s dealer definition. The exemptions expire five years after publication, and the framework sets limits on the number of symbols and trading volume.

The proposed venue is not registered with the SEC for the activities described, and the agency has not passed on the merits or accuracy of its disclosures. The SEC invited public comment on possible changes and next steps.