OKXICE LLC, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), has filed with the U.S. Securities and Exchange Commission (SEC) to establish a regulated exchange for trading tokenized U.S. stocks. The initial offering is expected to include 63 companies listed on the New York Stock Exchange (NYSE).
The filing, which occurred on October 4, aims to allow for the trading of tokenized versions of U.S. equities. Companies whose stocks are selected for tokenization will have a 30-day period to opt out before trading can commence. This venture combines OKX’s blockchain infrastructure with ICE’s market technology.
According to a report by Bloomberg, the SEC introduced its temporary Innovation Exemption in September. This exemption permits certain tokenized securities venues to facilitate secondary trading of tokenized U.S. stocks through permissioned automated makers and liquidity pools, provided specific conditions are met. These conditions include that tokenized shares must carry the same shareholder rights as the underlying securities, smart contracts must be auditable and run on public, permissionless blockchains, and trading must cease if the underlying stock is suspended on its primary exchange.
As CryptoPotato reported, Coinbase had previously announced in June plans to offer tokenized stocks to customers outside the U.S., with shares backed 1:1 by the underlying assets and carrying shareholder rights. This move predated the SEC’s September exemption and indicated a growing trend among crypto exchanges to explore connections with stock trading infrastructure.
The filing by OKXICE LLC represents one of the first attempts by a crypto exchange to offer tokenized U.S. stocks through a regulated exchange under the SEC’s temporary regulations. The partnership with ICE, which acquired a stake in OKX in March, provides a foundation for combining exchange infrastructure with blockchain-based trading. This framework could potentially enable round-the-clock trading of U.S.-listed stocks, subject to the SEC’s stipulated conditions.
However, the launch of OKX’s tokenized stock trading platform is contingent on regulatory processes and the decision of the 63 NYSE-listed companies to participate. The exact date of the launch remains uncertain, depending on the completion of the 30-day notice period and other requirements outlined by the SEC. Whether these companies will opt out of the tokenized stock trading remains a key uncertainty.
Why This Matters
The materials describe a narrow update: OKXICE LLC, a joint venture between OKX and ICE, has filed with the SEC to establish a regulated exchange for trading tokenized US stocks. Whether the 63 NYSE-listed companies will opt out of the tokenized stock trading.
Broader Context
Source materials place the factual news in this context: The SEC introduced its temporary Innovation Exemption in September, allowing certain tokenized securities venues to facilitate secondary trading of tokenized US stocks through permissioned automated makers and liquidity pools.
