OKX and ICE have submitted an application to the U.S. Securities and Exchange Commission (SEC), intending to launch a blockchain-based platform for tokenizing U.S. stocks.
The platform initially plans to offer tokenized shares of 63 companies listed on the New York Stock Exchange.
These tokenized shares will bring direct cash dividends and voting rights for shareholders to investors.
As a major cryptocurrency exchange, OKX has officially submitted a notice to the U.S. Securities and Exchange Commission (SEC), planning to launch a blockchain-based trading platform through its joint venture with ICE.
OKX plans to provide 24-hour trading for tokenized shares of 63 NASDAQ-listed companies, including Nvidia, Apple, Microsoft, and Tesla.
OKX and ICE plan to launch a tokenized stock trading platform
OKXICE LLC is a joint venture between the crypto exchange OKX and Intercontinental Exchange (ICE), the latter being the parent company of the New York Stock Exchange. The company submitted a notice to SEC on October 4th.
The platform combines the digital asset infrastructure of OKX with the traditional financial market experience of ICE. The two companies established this joint venture in June.
The proposed platform will initially offer tokenized shares of 63 companies listed on the New York Stock Exchange, including both large technology firms and enterprises related to cryptocurrencies, such as Strategy, Coinbase, Circle, and BitGo.
Before starting trading, each company will have 30 days to raise objections to the listing of their shares on this platform or choose to withdraw.
The platform may bring Wall Street into around-the-clock trading.
Unlike offshore stock tokens that typically only track traditional stock prices, the OKXICE plan to create blockchain securities with shareholder rights.
According to the disclosed documents, each tokenized share will grant the holder the right to direct cash dividends as well as the right to vote on company matters.
The platform will operate 24/7, seven days a week. It plans to use licensed Uniswap and v4 liquidity pools on XLayer, and allow tokenized stocks to be traded in pair with USDC, USDG, or USDT.
Former Governor of New York State Andrew Cuomo called this move a "significant step forward" for OKXICE, as it may help to create "a truly global, 24-hour Wall Street."
SEC Rules Impose Restrictions on Tokenized Stocks
This application utilizes the five-year "Innovation Exemption" framework introduced by SEC on September 17th. This framework allows approved tokenized securities exchanges to process certain U.S. securities through blockchain-based systems.
However, the proposed market will still face restrictions.
A tokenized trading platform can list up to 75 eligible stocks at most, and the trading volume of a single token shall not exceed 0.25% of that stock's total trading volume from the previous month.
Meanwhile, before the tokenization of U.S. stocks officially begins trading, the proposed trading venue still needs to complete the regulatory approval process.
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