OKX, NYSE Parent ICE Seek US Tokenized Stock Trading Platform, Starting With 63 Shares

OKX and Intercontinental Exchange Inc., the parent of the New York Stock Exchange, are moving to launch a platform in the US for trading tokenized stocks.

OKXICE LLC, a joint venture between OKX and ICE, has filed paperwork with the US Securities and Exchange Commission for the platform launch, Bloomberg reported on October 4. The venture initially plans to seek approval to tokenize and trade shares of 63 companies listed on the NYSE.

The filing follows the SEC's introduction last month of a temporary “innovation exemption” allowing blockchain-based securities to trade in the US. Under the new framework, issuers can ask to be excluded from tokenization, and a 30-day objection period applies before trading can begin.

OKXICE is among the first firms seeking to operate a tokenized securities market under the SEC exemption. Tokenized securities must include the same shareholder rights as conventional stocks, including dividends and voting rights.

ICE participated in a March investment that valued OKX at $25 billion. At the time, the two companies also agreed to cooperate on a US-compliant crypto futures market, and OKXICE combines OKX's blockchain infrastructure with ICE's market technology.

Andrew Cuomo, co-chair of OKXICE, said blockchain, liquidity pools and smart contracts are clearly a more efficient way to trade stocks. He added that the model would enable 24-hour global stock trading and offer substantial advantages.

The SEC's latest move is set to intensify competition among crypto firms in the US to tokenize stocks. Business models could range from working directly with listed companies to tokenize shares to third parties issuing tokens without the original issuer's participation.

The timing of OKXICE's commercial launch will be decided after the 30-day issuer objection period ends and the relevant requirements are met.