OKX and ICE Joint Venture Files for 24/7 Tokenized U.S. Stock Trading
Written with artificial intelligence.
OKXICE, a partnership between OKX and Intercontinental Exchange, has filed with the SEC to establish a platform for trading tokenized U.S. stocks. This initiative comes under the SEC's new 'Innovation Exemption' rule, allowing trading outside normal hours.
Overview of the Initiative
OKXICE, the joint venture formed by crypto exchange OKX and the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), has taken steps to create a platform for 24/7 trading of tokenized U.S. stocks. Former New York Governor Andrew Cuomo, co-chair of the venture, announced the filing with the U.S. Securities and Exchange Commission (SEC) via X.
Details of the Tokenized Trading Venue
The trading venue aims to feature over 60 companies currently listed on U.S. stock exchanges. Tokenized stocks, which are digital representations of traditional shares that utilize blockchain technology, will allow for trading beyond conventional market hours and will facilitate faster settlement times.
SEC's Innovation Exemption
This initiative is made possible by a recent SEC rule called the "Innovation Exemption," which was introduced on September 17. This temporary exemption, lasting five years, permits qualifying platforms to trade tokenized U.S. stocks using automated market makers and liquidity pools. Important stipulations include:
- Tokenized shares must offer the same rights as conventional stocks, including dividends and voting.
- Companies have a 30-day window to object to their shares being tokenized.
Market Implications
The establishment of this trading venue signifies a shift toward mainstream adoption of tokenization in the financial sector. While crypto exchanges have previously offered tokenized U.S. stocks to international customers, OKXICE aims to bring this trading onshore within a regulated framework. Currently, the market for tokenized stocks stands at approximately $3.2 billion, reflecting a 15% increase in the last month, according to RWA.xyz.
Regulatory steps and the objection period will influence the timeline for this venture, but Cuomo expressed optimism about the future of tokenized trading, stating, "And we're just getting started."
This article is for information only and is not investment advice.