OKX-ICE's Andrew Cuomo Calls Issuer Objections a 'Natural Response' to Tokenized Stock Plans
Andrew Cuomo responds as 16 companies push back on tokenized shares
Andrew Cuomo, co-chairman of the OKX-ICE joint venture, said a growing list of companies rejecting tokenized trading of their shares is an expected part of testing a new market structure. His comments came after Microsoft, Alphabet and Goldman Sachs joined the group of objectors.
"This is a very natural response," Cuomo, an OKX board member and former New York governor, said during a press call on Tuesday. "The model was designed to give companies the right to determine whether they want to opt in or opt out."
He added that the joint venture had anticipated companies would rather "wait and see how it goes rather than be the first to participate."
Key details on the objections and the SEC framework
- A Monday public notice showed 16 companies had objected to having tokenized versions of their shares traded on OKXICE, the planned venue from crypto exchange OKX and New York Stock Exchange parent Intercontinental Exchange (ICE).
- Seven newly disclosed objectors were Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald's and Western Digital. They joined companies including Broadcom, Verizon and UnitedHealth.
- The objections relate to trading under the SEC's five-year "Innovation Exemption," rolled out roughly a month ago. The framework lets qualifying venues test trading through automated market makers and liquidity pools, while giving issuers a say in whether their shares participate.
- Cuomo described the approach as a deliberately limited experiment, with caps on the number of stocks and trading volumes. "There are limits on how many companies can participate and on the volume that can be traded, so by definition, it really is a sandbox — a model demonstration," he said.
What Cuomo and issuers say about the objections
Tokenization firms also weighed in on the pushback. Carlos Domingo, CEO of Securitize, said issuers' concerns warrant attention. "We think it's entirely reasonable for issuers to ask questions about how these new markets work, particularly around pricing, investor protections and shareholder rights," Domingo said.
Domingo added that "there's an important education process underway," and that issuers have different options for participating in tokenization, including issuer-sponsored approaches.
Securitize earlier this month announced an offering of 12 tokenized stocks for U.S. investors, with plans to make them available on OKXICE's venue. Microsoft and Alphabet are among those stocks. Their objections to OKXICE do not, by themselves, establish opposition to Securitize's separate offering.
Dave Hendricks, CEO and founder of Vertalo, an SEC-registered digital transfer agent and tokenization software platform, said the objections show the framework is working as intended. "The 30-day objection window is the mechanism the SEC built in to give companies a say," he said. "Issuers are using it."
Hendricks also pointed to gaps in infrastructure connecting traditional exchanges with tokenized securities venues, saying no system yet harmonizes trading between exchanges and those venues. "Until that process exists, more objections are the predictable result," he said, adding that "an objection today, before the rails are in place to harmonize, may be an acceptance later."
What is confirmed
A Monday public notice showed 16 companies had objected to trading of tokenized versions of their shares on OKXICE under the SEC's Innovation Exemption. The newly disclosed objectors were Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald's and Western Digital. Cuomo, Domingo and Hendricks made the comments attributed to them above. Securitize announced an offering of 12 tokenized stocks for U.S. investors earlier in the month, with plans to make them available on OKXICE's venue.
What is still unclear
It is not confirmed whether the companies objecting to OKXICE also object to Securitize's separate tokenized stock offering. The source material does not say whether any objections will be withdrawn, or what specific timeline the SEC or OKXICE will follow next.
Why this matters for crypto and stock market watchers
Tokenized stocks would let U.S. investors trade shares around the clock using blockchain infrastructure, which is a shared record-keeping system for digital assets. The objections offer an early look at how companies are navigating that new market structure, and at the questions issuers are raising about pricing, investor protections, custody and shareholder rights.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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