The owner of the New York Stock Exchange has scaled back plans to issue tokenised versions of blue-chip US stocks after more than half of targeted companies objected. A joint venture between crypto exchange OKX and NYSE owner Intercontinental Exchange initially aimed to offer tokenised shares in 62 companies, but 38 companies — including Alphabet, Microsoft, JPMorgan and McDonald’s — lodged formal objections by Wednesday. The plan is expected to proceed without those stocks.
The OKX ICE Tokenised Securities Venue intends to buy stocks and issue digital representations as tokens on its platform. Under US securities rules, the tokens would carry the same rights as underlying stocks, including voting power and dividends. Companies have until November 3 to object under Securities and Exchange Commission rules.
Tokenised stocks are blockchain-based representations of traditional equities. Proponents say they enable round-the-clock trading and easier use as collateral, but some worry about limited shareholder visibility and price discrepancies. Applied Optoelectronics cited uncertainty around pricing, liquidity and volatility, while JPMorgan said it would continue evaluating opportunities as the market develops.
Former New York governor Andrew Cuomo, co-chair of the joint venture, called the cautious approach rational. Nasdaq has opted not to offer such trading, warning of risks from a parallel market structure.
Source: Financial Times Companies · Summarized by HeadlinesBriefing