Wells Fargo, Cisco, Marvell join 22 firms objecting to OKXICE tokenized stock plan

Major firms block participation in new tokenized market

Wells Fargo, Cisco, and Marvell Technology have officially opted out of plans by OKXICE to trade their shares on a blockchain. This move adds to a growing list of companies that do not want their stock available on the new platform. The total number of objecting firms has now reached 22.

These companies joined others like Microsoft, Alphabet, and Goldman Sachs in saying no to the venue. The objections are filed under the U.S. Securities and Exchange Commission's new rules for digital stocks.

What the new rules say

• The SEC's framework, called the Innovation Exemption, allows crypto platforms to test trading of real-world stocks. This lets people buy and sell shares using digital tokens instead of traditional paper certificates.
• Companies have 30 days to stop their shares from being listed on these new platforms.
• OKXICE plans to use a blockchain called XLayer to settle trades, with payments made in stablecoins (digital money designed to hold a steady value, like a digital dollar).
• OKXICE co-chair Andrew Cuomo said these objections were expected. He noted that many companies prefer to wait and see how the new market functions before joining in.

Why this matters for crypto

Tokenized stocks are a big part of the push to bring traditional investing onto crypto networks. They would allow trading around the clock, not just during standard business hours. The fact that so many major firms are saying no highlights a significant hurdle for this new market structure. Until more companies agree to participate, investors will have fewer options in this specific sector.

Sources

• CoinDesk