56 American companies have banned trading in tokenized copies of their shares on the OKXICE platform. The platform disclosed the latest refusals in a notice dated November 2.
What kind of platform this is. OKXICE is a joint venture between the OKX exchange and Intercontinental Exchange, the owner of the NYSE. It planned to launch round-the-clock trading in tokenized US stocks. A tokenized stock is a digital copy of a share on a blockchain.
Why this matters to a trader. The most popular securities for trading have dropped off the list. A refusal from the issuer closes its stock to the round-the-clock platform.
Who refused most recently?
Six new names were added in the updated notice dated November 2. A week earlier the list had 50 companies.
- Amazon, Tesla, SpaceX, Netflix, SoFi Technologies and Lam Research - six fresh refusals.
- 49 of 62 initially selected companies are opposed, about 79% of the original list.
- Seven objections came from companies that were not in the original selection.
- 13 tickers have so far stayed silent: Apple, Strategy, Robinhood, Coinbase, Palantir, Circle, Boeing and Home Depot.
Securitize and BitGo said outright that they do not plan to refuse.
Why could the list grow further?
- 30 days to decide. Under SEC rules, that is how long a company has from the moment it receives written notice from the platform.
- October 4. That is the day OKXICE published its first application.
- November 3. For those notified on October 4, the refusal deadline expires right now.
- Up to five business days. That is how long the platform is given to publish the refusals it receives.
How was the platform supposed to work?
The idea was round-the-clock trading in tokenized versions of US stocks. Settlement was to be in stablecoins.
- Stablecoins - coins whose rate is pegged to the dollar.
- A five-year "innovation exemption" from the SEC - the legal basis for the project.
- An automated market maker is permitted by this exemption. Trades go against a pool of assets; orders from other participants are not needed for this.
What happens next?
Andrew Cuomo, co-chairman of OKXICE and former governor of New York, spoke at a press conference on Friday. According to him, many companies want to first see how the market works.
Andrew Cuomo: "we are at the very beginning of launching a fundamentally different market structure."
- The trading start date has not been named.
- The final number of stocks on the platform has not been named either.
While there is no launch yet, there is time for something else: to study the catalog of prop firms and understand how the selection works.
Do you trade US stocks from your own account?
Round-the-clock stock trading widens the window for trades. But the volume you bring into it does not depend on the exchange's schedule. With a deposit of a few thousand, even a correctly executed report gives a gain that is unnoticeable in the monthly total. In prop trading, the company provides the capital for trading: you pass a paid selection, receive risk limits and a share of the profit. While the new platform is only getting ready, there is time to understand how this selection works.