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Broadcom, Verizon Object To SEC’s Tokenised Stock Framework

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Broadcom, Verizon Object To SEC’s Tokenised Stock Framework
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Broadcom, Verizon and UnitedHealth are among the companies opposing a new US framework that would allow tokenized stocks to be traded on crypto platforms. The objections came after OKX-ICE, a joint venture between crypto exchange OKX and Intercontinental Exchange (ICE), announced plans to launch a platform for trading tokenized shares.

Eight new objections were disclosed in a public notice on October 15, taking the total number of companies that have objected to nine. The companies have not explained their reasons for opposing the plan.

Broadcom, Verizon Object To SEC’s Tokenised Stock Framework

Source: okx.com

Other companies on the list include AppLovin, Applied Digital, Rocket Lab, CoreWeave, Applied Optoelectronics and Cerebras Systems. Cerebras had already chosen not to have its shares listed on the platform.

Tokenized stocks are digital versions of company shares created using blockchain technology. They are designed to allow people to buy and sell shares through digital platforms. Under the OKX-ICE plan, trading would be available 24 hours a day, seven days a week. Transactions would take place on OKX’s XLayer blockchain, using stablecoins for payments.

The platform plans to begin with shares of 63 US-listed companies. It would operate under a five-year exemption announced by the US Securities and Exchange Commission (SEC) on September 17. This exemption allows eligible platforms to trade tokenized US stocks under certain conditions.

According to the proposed system, real company shares would be held through a registered broker-dealer to match the number of digital tokens issued. Token holders would also receive rights similar to those of regular shareholders, including dividends and voting rights.

However, some companies are concerned about how the system would work. Nasdaq has also said it does not want its own shares to be tokenized under this framework. According to a report by the Wall Street Journal, Nasdaq is concerned that the proposed platform would not display the best available prices in real time or report trades to the consolidated tape, which collects trading information from different stock markets.

A report by TD Securities also points to a lack of interest among many companies in tokenizing their shares. Analysts who spoke with several companies found that only a small group, mainly those connected with the crypto industry, showed interest in the idea.

Another major concern is that the SEC’s permission is temporary. A future SEC leadership could change or withdraw the exemption. This uncertainty may make companies and financial institutions hesitant to invest money or connect their systems to such platforms.

The situation shows that while tokenized stocks could make share trading more flexible and accessible, companies still want clear rules and proper safeguards before allowing their shares to enter the crypto market.

Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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