OKX and NYSE Owner ICE Plan 24/7 Blockchain Market for Tokenized Stocks

What happened

OKXICE, the joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), filed with the US Securities and Exchange Commission on Sunday. The filing notifies the regulator of plans for a marketplace where investors buy tokenized stocks. ICE owns the New York Stock Exchange, and the venture wants to offer tokenized shares of NYSE-listed companies, per Bloomberg.

The filing names more than 60 companies, including Nvidia, Tesla, SpaceX, Microsoft, Amazon and Alphabet. JPMorgan Chase, Walmart, Netflix and Boeing are also named, along with crypto-linked companies Coinbase, Circle, Robinhood, Strategy and Securitize. Companies have a 30 day window to object to being included, and Cerebras has already objected. TD Securities analysts noted that no stock symbol is a sure thing yet.

Each token would be backed one to one by an actual share held by a registered broker dealer, per the filing. Token holders would keep the same rights as regular shareholders, such as dividends and voting rights. Trades would use stablecoins instead of US dollars, and OKXICE plans to support USDC, USDT and USDG. There would be no traditional order book. Tokens and stablecoins would sit in blockchain pools that investors trade against directly, with automated market makers setting prices, using technology from Uniswap. Trading would happen on XLayer, a blockchain built by OKX.

The venue would not close. Trading would continue on nights, weekends and holidays, even when the Nasdaq is shut. Prices outside normal trading hours would come from activity inside the platform pools rather than the latest Nasdaq closing price. Identity verification and anti-money laundering checks would apply before any investor trades. Andrew Cuomo, a former New York governor and OKXICE co-chair, said the firms plan to launch under the SEC's innovation exemption.

Why it matters

A stock market that runs around the clock would change when and how shares change hands.

TD Securities said the platform may have limited impact on institutional investors in the near term, citing easy existing access to listed stocks and uncertain regulation. The bank added that actively managed pools could matter more for stock trading than simple formula based pools.

The SEC exemption behind the venue lasts five years and is not a permanent rule, which could make large financial firms hesitant to build systems for a framework that might change. Cuomo has advised OKX on policy matters since 2022, including during the exchange's $504 million settlement with the Department of Justice over anti-money-laundering violations.

What the data shows

• The filing names more than 60 US stocks, and a post cited 63 NYSE stocks heading on-chain.
• Companies have a 30 day window to object, and OKXICE plans to support three stablecoins: USDC, USDT and USDG.
• The SEC exemption lasts five years rather than being a permanent rule.

What is still unclear

• Cerebras has already objected to being part of the filing, and TD Securities analysts noted that no stock symbol is a sure thing yet.
• TD Securities said the platform may have limited near-term impact on institutional investors.

Questions readers ask