CoreWeave, Broadcom reject tokenized shares on OKXICE venue
RWA Signal Insight
StocksCoreWeave, Broadcom, and Cerebras Systems have formally objected to the listing of their tokenized shares on the new OKXICE venue. This platform operates under a recent SEC "Innovation Exemption" that allows tokenized securities trading if companies fail to object within 30 days of receiving notice. While OKXICE intends to facilitate 24/7 trading for over 60 U.S.-listed companies, the refusal by major firms highlights significant corporate resistance to unauthorized tokenization. The SEC's order, effective September 17, 2024, classifies these platforms as Tokenized Securities Venues rather than traditional exchanges, providing a five-year regulatory relief period. Currently, approximately $2.43 billion in tokenized stock exists without issuer consent, dwarfing the $365 million in authorized tokens. Industry stakeholders like Computershare and law firm Hunton Andrews Kurth are now lobbying the SEC for a centralized opt-in registry to prevent notice-related oversights. This conflict underscores the ongoing tension between decentralized trading venues and corporate control over equity representation on-chain.
Key points
- CoreWeave, Broadcom, and Cerebras Systems blocked their stocks from trading on the OKXICE venue.
- SEC's Innovation Exemption allows tokenization if companies do not object within 30 days.
- Unauthorized tokenized stock accounts for $2.43 billion, or 84.5% of the total market segment.
- Stakeholders are requesting a centralized SEC database for standing objections to tokenization.
Background
Tokenized stocks are digital assets on a blockchain that track the price performance of traditional equities. These products are often structured as derivatives or synthetic assets rather than direct ownership of the underlying shares. They aim to provide 24/7 liquidity and fractionalized access to global markets outside of traditional exchange hours.