Wells Fargo, Arm and Intuit object to tokenized shares on OKXICE

Wells Fargo, Arm Holdings, and Intuit objected to having their shares tokenized on OKXICE, bringing total objections to 22 companies. The platform, backed by OKX and Intercontinental Exchange, filed with the SEC in October 2026 to tokenize 63 stocks under a new innovation exemption. The exemption requires platforms to notify companies before listing and allows issuers to block tokenization.

Company objections to tokenization

• ▪Wells Fargo, Arm Holdings, and Intuit will not allow their shares to be tokenized on the OKXICE joint trading platform
• ▪Sixteen of the 22 companies that objected to tokenization on OKXICE, backed by OKX and ICE, are listed on Nasdaq
• ▪Microsoft and Alphabet are among the companies that have objected to stock tokenization on OKXICE, backed by OKX and ICE
• ▪Many overseas tokenized stocks are marketed like stocks but rarely offer the same rights, disclosures and protections as traditional equities
• ▪In total, 22 companies have objected to having their shares tokenized on OKXICE, a trading platform backed by OKX and ICE

OKXICE joint venture

• ▪Andrew Cuomo is co-chairman of OKXICE, the joint venture backed by OKX and ICE
• ▪Intercontinental Exchange owns the New York Stock Exchange
• ▪The cryptocurrency industry has said stock tokenization could revolutionize markets by allowing shares to be traded 24/7 and settled instantly
• ▪OKX and Intercontinental Exchange (ICE) had planned to tokenize 63 stocks through OKXICE, their joint venture
• ▪Andrew Cuomo said it was natural for companies to take a 'wait and see' approach to tokenization given how revolutionary tokenization could be

SEC innovation exemption

• ▪Under the SEC innovation exemption issued in September 2026, platforms must notify companies before listing tokenized versions of their stocks and cannot proceed if the issuer objects
• ▪OKX and ICE filed with the US Securities and Exchange Commission in October 2026 to launch tokenized stocks under the SEC's new innovation exemption issued in September 2026
• ▪The SEC's innovation exemption issued on September 17, 2026 allows platforms that facilitate trading of tokenized stocks to operate without complying with many requirements that apply to traditional stock exchanges
• ▪Under the SEC innovation exemption issued in September 2026, tokenized stocks must confer the same rights and privileges as traditional securities, including the ability to receive dividends and exercise voting rights

Market fragmentation risks

• ▪Nasdaq warned in a September 2026 FAQ that issuers must be cautious about their participation in tokenization given the risks
• ▪Nasdaq has warned that if improperly regulated, tokenization could fragment liquidity and undermine price discovery

Nasdaq competing platform

• ▪Nasdaq has teamed up with Payward, the parent of crypto exchange Kraken, to launch a tokenized stock platform in 2027
• ▪Nasdaq says it welcomes tokenization in principle but believes such products should be subject to the existing set of rules and investor protections

Perspective of Nasdaq

• ▪Nasdaq has warned that if improperly regulated, tokenization could fragment liquidity and undermine price discovery
• ▪Nasdaq says it welcomes tokenization in principle but believes such products should be subject to the existing set of rules and investor protections