Tokenization Faces Growing Wall Street Pushback as 50 Companies Reject OKX-ICE Stock Plan

• Tokenization and Tokenized Stocks are facing growing Wall Street resistance as 50 companies object to the proposed OKX-ICE plan
• The OKX-ICE plan has drawn objections from major companies, including Nvidia, Nike, Micron, and Costco, over third-party tokenized versions of their shares
• Nasdaq tokenization concerns are adding to the debate as reports suggest the exchange encouraged some listed companies to oppose the proposal while pursuing its own tokenization plans

The push to bring traditional stocks on-chain is now facing growing resistance from nearly 50 publicly traded companies. A total of 50 companies have now objected to listing their stocks on-chain through the proposed OKX-ICE Tokenization Plan. Companies such as Nvidia, Nike, and Costco are the latest to join the list. These objections have come at a significant time when Wall Street is pushing hard for tokenization, while debating the rules around the sector.

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50 Companies Object to OKX-ICE Plan

The number of companies opposing the proposed OKX-ICE Plan has now hit 50. The venture’s October 30 notice listed 50 companies that have objected to their shares being listed on-chain. Companies such as Micron, Costco, Palo Alto Networks, CrowdStrike, Corning, Hewlett Packard Enterprise, Nike, Reddit, and others were new additions reported in the update.

The total count of companies stood at 26 on October 26 and rose to 38 on October 28. The latest objections emphasize how this resistance is now growing among companies opposing the tokenization of their shares through this particular venue.

The OKX-ICE plan is a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange, the parent company of NYSE. The proposed plan aims to allow eligible investors to trade tokenized versions of US-listed stocks 24/7 using blockchain-based liquidity tools.

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Why Wall Street Is Pushing Back Against Tokenized Stocks?

The objections have come as companies consider what third-party tokenization could mean for their shares. For instance, under the SEC’s temporary exemption, qualifying tokenized stock securities venues must notify companies before offering blockchain-based versions of their shares. Issuers have 30 calendar days to submit a written objection. A valid objection then prevents that particular venue from offering the affected third-party tokenized shares under this exemption.

This gives companies a way to challenge how their shares are represented on-chain. At the same time, this debate extends to topics such as shareholder rights, pricing, liquidity, and market oversight. Companies may need to evaluate the rights and protections attached to ordinary shares before listing their shares on-chain.

Nasdaq Dispute Fuels Further Concerns

The growing opposition to the OKX-ICE plan is also heating up as Nasdaq reportedly joins the discussion. Per the Crypto.news report, Nasdaq representatives may have encouraged some companies listed on its exchange to object to this plan. However, the organization is yet to confirm such claims.

At the same time, Nasdaq is also pursuing its own tokenization plans, with a focus on bringing blockchain-based securities into the market.

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