OKX-ICE venture files plan for 24/7 tokenized stock trading

OKXICE, a venture between crypto exchange OKX and Intercontinental Exchange (ICE), has filed with the SEC to launch a venue for round-the-clock trading in tokenized U.S. stocks. The plan would bring blockchain-based trading to shares in more than 60 listed companies. CoinDesk reported the filing and the proposed scope of the venue.

What would traders be able to buy and when?

The venue is planned to offer tokenized shares in more than 60 U.S.-listed companies, according to CoinDesk and Reuters. Tokenized shares are digital records on a blockchain that represent stock. The venture says the venue would trade around the clock, rather than only during regular U.S. market hours.

The filing also says the shares would carry the same rights as regular stock, including dividends and voting, CoinDesk reported. That condition matters because the tokens are meant to represent shares with those rights, rather than simply track a stock’s price.

What does the SEC exemption allow?

The SEC issued its temporary “Innovation Exemption” on Sept. 17. It gives qualifying tokenized securities venues conditional relief from the definition of an exchange, allowing them to use permissioned automated market makers and liquidity pools to trade certain tokenized stocks. These pools match trades among approved participants.

The SEC’s announcement says the exemption expires five years after publication. It also sets limits on the number of stocks and trading volume a venue can support. Venues must verify that token holders get the same rights as holders of equivalent traditional shares. Companies must also receive notice and a chance to object before an unaffiliated party’s tokenized version of their stock is listed.

When could the venue open?

The filing is a plan, not confirmation that trading has started. CoinDesk reported that companies would have 30 days to object and that other regulatory steps remain. The SEC’s exemption provides a route for qualifying venues, but its conditions still apply.

ICE, which owns the New York Stock Exchange, announced a strategic relationship with OKX in March that included plans to give OKX customers access to ICE futures and NYSE tokenized equities markets, subject to regulatory approval. The new filing sets out a specific proposed venue. The sources do not give a launch date.

Sources and documents

• CoinDesk reported — coindesk.com
• SEC’s announcement — sec.gov