Nvidia, Nike and other corporate giants object to OKX plan
The new names that recently raised objections include Nvidia, Nike, Costco (COST), Micron Technology (MU) and Reddit (RDDT).
Other companies that have recently raised objections include cybersecurity firm CrowdStrike (CRWD), Corning (GLW), Bloom Energy (BE), IREN (IREN), USA Rare Earth (USAR), Palo Alto Networks (PANW) and Hewlett Packard Enterprise (HPE).
Big names in the financial world, including JPMorgan Chase (JPM), Goldman Sachs (GS) and Wells Fargo (WFC), have also raised objections.
Some other prominent names include Walmart (WMT), Coca-Cola (KO), McDonald’s (MCD), Eli Lilly (LLY), Adobe (ADBE) and Dell Technologies (DELL).
What is OKX’s stock tokenization plan?
OKXICE is a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE). Each of them owns a 50% stake in the joint venture.
The goal is to enable tokenized versions of traditional US stocks to be traded on the blockchain.
Instead of buying these shares on a traditional brokerage platform, eligible investors can trade blockchain tokens that represent ownership interests in the underlying securities.
The platform will be open 24 hours a day, seven days a week, as per the company’s public notice.
The planned platform will be based on a temporary regulatory exemption issued by the US Securities and Exchange Commission (SEC) on Sept. 17.
However, the regulator gave companies the option to object to any unauthorized third-party tokenization of their shares.
If a company submits an objection within the specified timeframe, then its third-party tokenized shares cannot be offered by the platform under the exemption.