Microsoft and Alphabet join 14 other companies objecting to a plan by OKXICE, a venture of OKX and ICE, to trade blockchain-based versions of their shares

Public companies can now block tokenized stock trading on specific platforms without prior consent.

Microsoft and Alphabet have joined 14 other companies in objecting to OKXICE's plan to offer blockchain-based versions of their shares. The platform, a venture between crypto exchange OKX and ICE (parent company of the NYSE), aims to provide 24/7 trading of tokenized stocks under a temporary SEC exemption. Companies have a 30-day window to object after being notified, after which trading can proceed on that platform if no objection is filed. While these objections block trading on OKXICE under the current exemption, they do not prevent tokenized trading of shares on other platforms or in other jurisdictions. OKXICE's plan seeks to tap into a market for tokenized stocks by offering continuous trading, contrasting with traditional market hours.

The objections highlight a conflict between established public companies and emerging digital asset platforms, signaling that regulatory frameworks for tokenized securities are still in flux. Companies are concerned about potential price discrepancies, loss of control over corporate announcements, and the operational risks associated with 24/7 trading. This pushback indicates that while the technology for tokenized trading exists, its integration into mainstream finance faces significant corporate governance and market integrity challenges.

The SEC's temporary exemption, allowing tokenized stock trading without full exchange registration, is being tested by this wave of objections. If a substantial number of companies successfully object, OKXICE might need to revise its strategy or await clearer regulatory guidance. The outcome will influence whether tokenized stock trading gains broader traction or remains a niche market, potentially impacting future innovation in financial market infrastructure.