The joint venture OKXICE between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, has submitted an application to the U.S. Securities and Exchange Commission (SEC), planning to launch a platform for trading tokenized U.S. stocks. Andrew Cuomo, the former governor of New York State and chairman of the joint venture, announced this news on social media.
In the initial phase, the trading platform will list over 60 companies that are currently listed on U.S. stock exchanges. Commo stated, "Tokenization is gaining real momentum, and we are beginning to see what happens when traditional market infrastructure meets blockchain technology. OKX and ICE bring together the deep expertise of both sides. The opportunity now is to build upon this first step and demonstrate how a 24/7 online market can make trading and settlement more efficient, more accessible, and more globalized."
Tokenized stocks are digital versions of ordinary stocks that exist on the blockchain and can be traded outside of regular market hours, with faster settlement times than traditional stocks. This initiative is based on new regulations from the U.S. Securities and Exchange Commission (SEC). On September 17th, the SEC issued an "Innovation Exemption" that allows eligible venues to use automated market makers and liquidity pools to trade tokenized U.S. stocks. This exemption is temporary and valid for a period of five years.
Exemptions from accompanying safeguard measures. Tokenized stocks must enjoy the same rights as ordinary stocks, including dividends and voting rights. Companies whose stocks are tokenized have 30 days to object. OKX and ICE established a 50-50 joint venture in June to build infrastructure for tokenized financial products.
The participation of the parent company of the New York Stock Exchange indicates that tokenization is entering the mainstream. Cryptocurrency exchanges have been offering tokenized U.S. stocks to customers outside of the United States for some time. OKX itself has launched over 70 such tokens, which are issued in accordance with offshore regulations and cannot be purchased by U.S. investors. Nevertheless, the market is growing rapidly. According to RWA.xyz data, tokenized stocks are currently valued at approximately $3.2 billion and have risen by 15% in the past month.
OKXICE hopes to bring such transactions into regulated venues within the United States, so that the tokenized stock versions can enjoy the same dividends and voting rights as regular stocks. For investors, the key issue is the timing, which depends on a 30-day opposition period and other regulatory steps. Commo stated, "We have just begun."
