Companies Push Back on SEC Stock Tokenization Regime as Broadcom, Verizon and Others Refuse Listing

A new US Securities and Exchange Commission framework allowing tokenized stock trading is running into resistance from major companies, slowing the regime's broader rollout.

CoinDesk reported on Oct. 18 that OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent of the New York Stock Exchange, said in materials released on Oct. 15 that nine companies opposed tokenized trading of their shares.

The companies include Broadcom, Verizon and UnitedHealth, along with AppLovin, Applied Digital, Rocket Lab, CoreWeave and Applied Optoelectronics. Including Cerebras Systems, which had previously objected, the total stands at nine. Nasdaq also separately said it would not allow tokenized trading of its own shares.

OKXICE on Oct. 5 submitted a plan to the SEC to offer 24-hour tokenized trading for shares of 63 US-listed companies. The service is based on the SEC's five-year temporary innovation exemption introduced last month. It would use blockchain liquidity pools to trade stocks and settle transactions in stablecoins.

The pushback reflects concerns over trading transparency and regulatory uncertainty. Nasdaq opposes trading of its shares on platforms where real-time best bid and offer quotes are not disclosed or where trade data is not fed into the consolidated reporting system. The specific reasons given by the nine companies that objected to OKXICE were not disclosed.

TD Securities said discussions with dozens of listed companies showed limited interest in stock tokenization outside some crypto-related firms. It identified the SEC framework's reliance on a temporary exemption, rather than a permanent rule, as a key obstacle because policy could still change. That could delay infrastructure investment by financial institutions and corporate participation.