Backlash Against Stock Tokenization Spreads, Nasdaq Intervention Allegations

The backlash from listed companies against the stock tokenization projects of the New York Stock Exchange (NYSE) and OKX is growing. Fifty companies, including JP Morgan and Nvidia, have submitted objections to OKXICE's stock tokenization plan, with 43 of them included in the initially selected 62 companies. Companies opposing the plan include JP Morgan, Walmart, Nvidia, Coca-Cola, and Goldman Sachs, who are concerned about the impact of tokenization on stock prices, liquidity, volatility, shareholder rights, asset custody, and market transparency. An executive from a Nasdaq-listed company claimed that a Nasdaq representative encouraged them to oppose OKXICE's plan. While Nasdaq declined to comment on this, it reaffirmed its position that the SEC's Tokenized Securities Trading Platform (TSV) system is not the best approach. OKXICE plans to tokenize stocks through the SEC's innovation exemption program, but the opposition has increased uncertainty regarding the project's advancement. The initial 30-day objection period ends in three days, and additional objections may be possible. TSV LLC is set to begin trading tokenized stocks for Canton Strategic Holdings.

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