Nvidia, Nike Join 50 Firms Opposing OKX-ICE Tokenized Stock Plan

TLDR:

• Nvidia and Nike joined a growing group of issuers objecting to OKXICE, lifting the reported total to 50.
• The objection count climbed from 38 on October 28 to 50 on October 30, before any launch was announced.
• SEC rules give notified issuers 30 calendar days to object to third-party tokens linked to their shares.
• OKXICE proposes 24-hour X Layer trading; SEC caps volume at 0.25% for 75 stocks and 2.5% for 250 others.

Nvidia and Nike have joined the growing opposition to the OKX-ICE Tokenized Stock Plan, pushing reported issuer objections to 50. The increase appeared in an October 30 public notice and was highlighted by journalist Eleanor Terrett on November 1.

Just two days earlier, objections stood at 38. Alongside Nvidia and Nike, newly listed companies include Costco, Micron Technology and Reddit. Meanwhile, the venture’s October 4 filing proposed 63 stock symbols representing 62 issuers.

However, the rising objection count does not mean 50 companies from that original roster have rejected the proposal. Some objectors were never included in the initial filing, and the platform still has no confirmed trading launch date.

Nvidia, Nike Added as OKX-ICE Objections Rise From 38 to 50

Nvidia and Nike now appear among the companies challenging the rollout. Earlier objections came from Microsoft, Alphabet, JPMorgan Chase, Goldman Sachs, Walmart and Eli Lilly. Objections span technology, banking, retail and healthcare.

However, the notices generally name objectors without explaining their individual reasoning. The notices did not specify reasons from Nvidia or Nike. The OKX-ICE Tokenized Stock Plan operates under an SEC framework announced September 17.

Its five-year Innovation Exemption allows qualifying venues to use permissioned automated market makers for certain tokenized securities activity. Under those rules, issuers receive notice before an unaffiliated third party offers tokens linked to their stock.

They have 30 calendar days to object in writing. Stock tokens also must preserve equivalent voting and dividend rights. Basically, an objection stops that token from trading on the notified venue. It does not, however, prohibit other platforms or prevent company-sponsored tokenization.

SEC’s 30-Day Rule Shapes OKX-ICE’s 24-Hour Trading

Under the OKX-ICE Tokenized Stock Plan, trading would run around the clock through permissioned Uniswap v4 pools on X Layer. A broker-dealer would hold the underlying shares. After completing eligibility checks, investors could exchange tokens for USDC, USDG or USDT.

However, timely objections from Nvidia and Nike would prevent their tokens from trading there. The exemption also establishes strict trading-volume limits for eligible stocks. Trading in 75 leading stocks would be capped at 0.25% of the previous month’s average daily volume, while another 250 symbols face a 2.5% ceiling.

Furthermore, trading must stop whenever the underlying stock is halted on its primary exchange. Even so, prices could differ from traditional market quotes outside regular hours. Those risks echo concerns previously raised by Applied Optoelectronics about liquidity, volatility and possible confusion over issuer endorsement.

The platform also has no confirmed trading launch date. For Nvidia and Nike, the objections target third-party listings rather than tokenization itself. Regulators also caution that prospective venue status does not establish compliance.

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