Walmart and 37 others object to OKXICE tokenized shares

Walmart, Microsoft, Alphabet, and JPMorgan Chase are among 38 companies that have objected to third-party tokenized versions of their shares trading on OKXICE, a proposed round-the-clock stock tokens venue backed by the owner of the New York Stock Exchange.

The venue’s October 28 notice lists the 38 issuer objections. Earlier reports on October 24 had listed 16 objectors. The expanded roster includes major technology and financial services firms that have formally refused the trading of unaffiliated third-party tokens representing their equity on the platform.

Fee Structure and Venue Ownership

OKXICE is owned equally by an Intercontinental Exchange (ICE) subsidiary and OKC USA. While ICE operates the New York Stock Exchange, OKXICE functions as a separate venue proposing secondary trading through automated liquidity pools on the XLayer blockchain.

Under the Securities and Exchange Commission (SEC) framework, tokens traded on such venues must carry shareholder rights equivalent to conventional shares. However, secondary token trading does not raise fresh share capital for issuers. The fee structure rewards the venue and liquidity providers rather than the underlying company. OKXICE’s service fee goes to the venue, separate pool fees accrue to investors who supply assets for trading, and network fees go to the blockchain. The fee schedule does not quantify a direct payoff for issuers.

The SEC’s September 17 exemption prohibits primary issuance and initial offerings on covered tokenized securities venues. This means the tokens are strictly for secondary trading, limiting the direct financial incentive for companies to participate in third-party tokenization arrangements.

Objection Process and Pricing Risks

Before offering a stock tokenized by an unaffiliated third party, a venue must notify the issuer. A written objection delivered by the 30th calendar day after the company receives that notice prevents the token from trading on that particular venue. SEC staff guidance distinguishes this issuer objection process from the separate public-notice period required before a venue begins operations.

Section II.D of the SEC order specifies no comparable routine issuer veto after the initial objection window. This creates an incentive for companies to refuse early while assessing a venue’s risks and benefits. On October 19, the Securities Industry and Financial Markets Association (SIFMA) proposed changes that could include affirmative issuer consent, a longer objection period, and a universal issuer opt-out.

The SEC identifies shareholder-register maintenance and possible price dislocation as risks issuers may weigh. OKXICE’s proposed pools price transactions from their asset balances rather than a conventional order book. The venue warns that token prices may diverge from underlying share prices, particularly when regular stock markets are closed or pool liquidity is thin. OKXICE provides for trading stoppages, including those tied to underlying-stock halts, but applies no additional reference-price bands beyond its disclosed stoppages.

Canton Strategic Holdings announced on October 29 that it agreed with tokenized securities venue TSV LLC to make its shares available through an issuer-sponsored arrangement. Canton engaged Fairmint to tokenize its shares, with Fairmint TA issuing the tokens and maintaining the official on-chain ownership record. Trading for Canton Strategic Holdings tokens is expected as early as November 2. Unlike the third-party tokens objected to by the 38 issuers, Canton chose its intermediaries and ownership-record arrangement, though both sponsored and third-party tokens under the SEC framework must provide equivalent shareholder rights.