Oracle, Intel, IBM Push Back Against Efforts to Tokenize Their Stocks — WSJ

What happened

Oracle, Intel and IBM objected to the SEC's plan to allow tokenization of their stocks, according to a Monday regulatory filing. A total of 26 companies have now opted out of the OKXICE tokenized securities trading venue.

Confirmed

Global impact / market context

If issuers can block tokenized versions of their shares, trading venues may struggle to build a broad menu of stocks. That limits new trading products and could reduce potential revenue for venues, while keeping more share trading on traditional exchanges.

Analyst inference

The SEC cleared a path for tokenized stock trading but gave companies a 30-day notice period and a right to object. OKXICE, owned by NYSE parent Intercontinental Exchange and crypto exchange OKX, triggered this review, so issuer pushback now shapes how quickly tokenized stocks reach U.S. markets.

Analyst inference

What to watch

1. The SEC order requires a tokenized securities venue to give an issuing company 30 days notice before trading its stock, and if the company objects, the venue cannot proceed with the offering. Confirmed
2. More companies may opt out of OKXICE before it launches, potentially shrinking the list of tokenized stocks available and testing whether the venue can attract enough trading interest. Analyst inference
3. Watch whether the SEC adjusts its framework, such as changing the notice period or objection rights, and whether OKXICE seeks talks with objecting companies to address their concerns. Proposed

Evidence

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