Intel, Oracle, IBM, IonQ object to OKXICE TSV tokenized stock trading

Intel, Oracle, IBM, and IonQ have added their names to the list of issuers objecting to trading their shares on OKXICE TSV. This development brings the total number of objecting companies to 26. The count of objectors rose from nine on October 15 to the current total. IBM and IonQ are identified as quantum computing players among the new additions. Other companies that have objected include Microsoft, Alphabet, Broadcom, Qualcomm, Arm, Cisco, Goldman Sachs, and Wells Fargo. More than 40% of the companies initially proposed for tokenized listing have requested to opt out.

OKXICE TSV is a joint venture between Intercontinental Exchange, the owner of the NYSE, and OKX's U.S. holding company. The venue plans to allow approved users to trade tokenized U.S. stocks 24/7 using permissioned Uniswap v4 liquidity pools on OKX's XLayer blockchain. Users must pass identity and sanctions checks and hold a nontransferable 'soulbound' token to participate. Trades must be fully funded, with no margin or borrowing allowed. The platform operates under the SEC's innovation exemption unveiled in September.

Notices from OKXICE TSV do not explain the companies' reasons for objecting or the specific implications for trading. It remains uncertain whether tokenized shares in self-custodied wallets would be protected by SIPC if the tokenizer's broker-dealer failed. Andrew Cuomo, co-chair of the tokenization venture, described the objections as a natural response. Nasdaq released guidance in September advising issuers to be cautious about participating in the innovation exemption.