Walmart, Eli Lilly and three other companies have objected to the OKX and Intercontinental Exchange tokenized stock plans, bringing disclosed objections to 38. Meanwhile, a rival venture on Canton could start trading an issuer-sponsored stock as early as Monday.
Walmart (WMT), Eli Lilly (LLY) and three other companies opted out of the tokenized stock trading plans from crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE). Objections now cover more than 50% of the companies on the venture's original roster.
Carnival (CCL), Arcos Dorados (ARCO) and Cigna (CI) also appeared in an updated public notice dated Oct. 28. The additions bring disclosed objections to 38 of the original 62, according to a CoinDesk tally.
The 30-day objection window under the SEC exemption
OKXICE issued its initial public notice on Oct. 4, outlining plans for round-the-clock stock trading. The SEC's five-year exemption lets qualifying venues trade tokenized U.S. stocks through automated market makers, which are software that executes trades using pools of assets.
When an unaffiliated third party tokenizes a company's shares, venues must notify the issuer and give it 30 days to object. Objecting costs nothing, but staying silent allows trading to begin without a mechanism to withdraw that consent later.
JPMorgan leaves the door open
JPMorgan Chase's objection appeared in Tuesday's notice. A spokesperson told CoinDesk: "We’ve decided not to participate in this venue at this stage". The bank said its decision did not rule out future participation.
Arcos Dorados and Cigna were outside the original roster of proposed listings, as were earlier objectors Cerebras Systems, Arm Holdings and Wells Fargo.
A Canton venue could trade as early as Monday
Canton Strategic Holdings (CNTN) said Thursday its shares could begin trading as early as Monday on the Canton-based marketplace TSV LLC, with Fairmint serving as transfer agent. That arrangement uses issuer-sponsored tokenization, which avoids the 30-day company objection process that applies to unaffiliated third-party tokenization.
Source: CoinDesk
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