IBM, Oracle, Intel and IonQ Object to OKX–ICE Tokenized Stocks

IBM, Oracle, Intel and IonQ have opted out of plans by crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to offer blockchain-based trading of their shares. The four were named in an updated public notice dated Monday, Oct. 26, from OKXICE, the firms' joint venture, bringing the total number of issuer objections to 26.

They join earlier objectors including Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo. The list highlights a hurdle for OKXICE and for the SEC's new framework: building a market that issuers are willing to join.

How the framework works

The SEC's five-year "Innovation Exemption" lets qualifying venues test round-the-clock blockchain-based trading of stocks. It also lets public companies block their shares from being offered. Venues must notify issuers and give them 30 days to object before listing tokenized versions.

OKXICE issued its first notice on Oct. 4. It plans to use Uniswap v4 liquidity pools on OKX's XLayer blockchain, with trades settled in stablecoins. The venue would rely on automated market makers, which execute trades through pools of assets instead of matching buyers and sellers in a conventional order book.

All four new objectors were among the 62 companies in the original proposed roster. That puts objections from the initial selection at 23, or about 37%, according to a CoinDesk tally. The total of 26 also includes Cerebras Systems, Arm Holdings and Wells Fargo, which were not in the original selection.

Why issuers are cautious

Industry experts told CoinDesk that the rules tilt the decision toward opting out. Objecting costs nothing, while staying silent allows trading to start with no way to withdraw consent later. For legal and investor-relations teams still learning the arrangements, saying no buys time.

The financial upside is also unclear. Tokenization could bring extra demand, especially from overseas investors, but TD Securities' Reid Noch has said that may not offset concerns about thin, round-the-clock trading outside the familiar market structure.

Andrew Cuomo, OKXICE's co-chairman and a former New York governor, called the objections expected. During a press call last week he said many companies prefer to "wait and see how it goes rather than be the first to participate."