Tokenization Objections Keep Stacking Up 🌙
Remember early last month when reports dropped that crypto trading platform OKX and the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, had asked the SEC for approval to trade tokenized shares of at least 63 NYSE-listed companies here. This came after the agency rolled out a temporary innovation exemption in September allowing some platforms to offer secondary trading of tokenized US stocks via liquidity pools and permissioned market makers 🕸️. Some firms originally picked for the OKXICE venture included JPMorgan, Goldman Sachs, beverage maker Coca-Cola, and retail giant Walmart, and by November 2 all of them plus 46 others had filed objections against the plan. According to journalist Eleanor Terrett some issuers were worried about how their share prices and liquidity could shift from tokenization. Others took a wait-and-see approach with issues around shareholder rights, market transparency, and OKX being offshore coming up fr 🦇. By November 3 the objectors hit 56 with Wall Street heavyweights like Tesla and sister company SpaceX, Amazon, SoFi Technologies, and streaming giant Netflix also saying no to the idea 👀. It kept going though. Yesterday Terrett noted energy equipment maker GE Vernova, Apple, and Home Depot had also objected to third-party tokenization of their shares so six members of the magnificent seven group had said no 🕯️. Today’s announcements by Nebius, Boeing, and ServiceNow bring the total refusals from the original OKXICE list to 54 with another eight that were not included preemptively opting out to reach 62 overall 🔪.Skeptics Wonder If OKXICE Can Actually Work 🥀
When the first 50 companies opted out Figure CEO Mike Cagney questioned how suitable the OKXICE venue even is arguing it would worsen execution since an automated market maker cannot match orders like a limit order book would 🌑. Meanwhile Morgan Stanley took a different route by announcing it had tokenized US stocks and Treasuries through the Depository Trust and Clearing Corporation (DTCC) which went live on October 28. It opened with 34 securities each token backed 1-to-1 by an asset held in custody 🖤.Just another echo from the void by iconofsin.eth 💖
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