Broadcom, Verizon Oppose SEC Tokenized Stocks Listing on OKX-ICE

SEC tokenized stock framework faces issuer pushback as Broadcom, Verizon object to OKX-ICE listing

The U.S. Securities and Exchange Commission’s new framework aimed at enabling trading in tokenized stocks is already facing resistance from some of the public companies whose shares could be wrapped into blockchain-based versions.

A public notice dated Oct. 15 from OKXICE—a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange—listed eight newly disclosed issuers that have objected to having their shares traded on the venue’s planned tokenized-stock platform.

The latest issuers named include Broadcom (AVGO), Verizon (VZ) and UnitedHealth (UNH), alongside AppLovin (APP), Applied Digital (APLD), Rocket Lab (RKLB), CoreWeave (CRWV) and Applied Optoelectronics (AAOI).

In total, the update cited nine objecting issuers, including AI chipmaker Cerebras Systems (CBRS), which had previously been disclosed as formally opting out. The notice did not specify why the companies objected or when the opt-out notices were submitted.

Separately, Nasdaq (NDAQ) has said it would opt out of having its own shares tokenized under the SEC framework, according to an FAQ published on Nasdaq’s website.

The tokenized-stock structure being prepared by OKXICE is intended to offer around-the-clock trading of blockchain-based shares that are backed one-for-one by underlying stock, using the SEC’s five-year “Innovation Exemption”.

The pushback matters because issuer participation affects what a tokenized-stock venue can list and, by extension, how useful these platforms are to investors. It also highlights an early challenge for the SEC’s temporary framework: even with regulated plumbing and fully backed tokens, some issuers are choosing not to have their equity represented and traded in tokenized form on the planned venue.

• What happened: OKXICE disclosed that additional public companies have filed objections to tokenized listings of their shares.
• What the framework allows: Tokenized stocks backed one-for-one by underlying shares, under a time-limited SEC exemption.
• Why it matters: Issuer resistance and uncertainty around a temporary regime could narrow the universe of available tokenized equities and complicate adoption.