Microsoft, McDonald's, Verizon, and Others Tell Crypto Platform Not to Tokenize Their Stocks

Key Points:

• Over 22 publicly traded companies, including Microsoft, Alphabet, Goldman Sachs, and Wells Fargo, have formally objected to plans for tokenized versions of their shares promoted by crypto startup OKXICE, citing concerns over new frameworks and potential risks to pricing and liquidity.
• OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange, received a temporary SEC exemption to offer 24/7 trading in tokenized U.S.-listed stocks, but many companies are cautious or opposed, with some fearing investor confusion or lack of clear benefits.
• Tokenized stocks have been heavily promoted as a revolutionary use of blockchain technology enabling broader access and continuous trading, but critics argue that blockchain is not essential for these features and view the trend as regulatory arbitrage by centralized entities.
• The SEC’s Innovation Exemption allows platforms to tokenize stocks without proactive company permission, requiring only a 30-day objection window after notification; however, objections only block trading on that specific platform and do not prevent other firms from offering tokenized shares.
• Legal uncertainties remain, as companies like AMC have challenged unauthorized tokenizations, and the SEC’s exemption permits tokenized securities trading without registration for five years, provided tokens maintain shareholder rights such as dividends and voting.