Key facts
- Nine public companies objected to their shares being tokenized on OKX and ICE's platform.
- Objections were filed under SEC innovation exemption rules.
- Concerns include price discovery and lack of issuer consent.
- The companies that objected are Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom and UnitedHealth Group.
Nine public companies have formally objected to their shares being offered in tokenized form on a proposed platform backed by OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. The objecting companies include Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom, and UnitedHealth Group. These objections, filed under SEC innovation exemption rules, test whether crypto platforms can create blockchain-based markets for public company shares without issuer consent. Concerns raised by industry experts focus on the lack of clarity regarding price discovery on public blockchains and the potential for market manipulation. While companies are not objecting to tokenization itself, they are concerned about not knowing the price of their shares once traded on these new venues. Additional institutional initiatives, such as those from the Depository Trust and Clearing Corporation (DTCC), could help build confidence in tokenized offerings.