Nvidia, Costco, Nike Among 12 New Firms Opposing OKXICE Tokenized Stocks Plan
Key Takeaways
- Twelve more companies, including Nvidia, Costco, Nike, Reddit, and CrowdStrike, have objected to OKXICE’s tokenized stocks plan, bringing the total to 50 of the 63 originally targeted companies.
- Nearly 80% of targeted firms have now objected, joining major companies such as Walmart, Microsoft, JPMorgan Chase, Coca-Cola, and Eli Lilly in opposing third-party tokenization of their shares.
- OKXICE co-chair Andrew Cuomo previously defended the initiative as an experiment in modernizing stock trading, arguing that companies will adopt tokenization at different speeds.
Nvidia Leads Latest Objectors
The latest additions were disclosed in an updated public notice dated Oct. 30 from OKXICE, a joint venture between cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE).
The 50 objections represent roughly 79% of the 63 companies initially identified for tokenization, and approximately $25 trillion in total market cap. Over half of the objectors trade on the Nasdaq, though 42% of the companies trade on ICE’s own NYSE.
Alongside artificial intelligence chipmaking giant Nvidia, the latest companies to object include cybersecurity firms CrowdStrike and Palo Alto Networks, semiconductor manufacturer Micron Technology, glass and materials company Corning, and Hewlett Packard Enterprise.
The remaining new objectors are bitcoin mining and AI infrastructure company IREN, USA Rare Earth, Bloom Energy, and warehouse retailer Costco. Athletic apparel giant Nike and social media platform Reddit round out the latest group.
Nvidia is particularly significant given its position among the world’s most valuable publicly traded companies and its dominant role in the AI computing market. The additions of Costco and Nike also extend the resistance among major consumer-facing businesses, while CrowdStrike and Palo Alto Networks add to an already substantial contingent of technology companies opposing the proposal.
The notice identifies the companies that have submitted formal objections but does not explain their individual motivations.
The expanding list creates another setback for OKXICE, which intends to offer blockchain-based versions of U.S. equities that investors can buy and sell continuously, including outside standard stock exchange operating hours.
Under the venture’s proposed structure, tokenized securities would be supported by actual shares held through registered broker-dealers. Transactions would use stablecoins and take place through permissioned Uniswap v4 liquidity pools operating on OKX’s X Layer blockchain.
The arrangement relies on temporary regulatory exemptions granted by the Securities and Exchange Commission in September, which permit qualifying blockchain trading venues to operate outside certain traditional exchange rules. The framework also gives issuers an opportunity to reject third-party tokenization of their shares.
Nearly 80% of Firms Opt Out
The latest development follows a series of objections that have steadily reduced the venture’s potential offerings. Bitcoin.com News reported last week that Walmart, Eli Lilly, Cigna, Carnival, and Arcos Dorados had joined the list, bringing the total to 38 at the time.
Earlier additions included Coca-Cola, JPMorgan Chase, Dell Technologies, AMD, and Adobe. Microsoft, Google parent Alphabet, Goldman Sachs, Wells Fargo, Oracle, Intel, IBM, and McDonald’s were also among the companies that had previously opted out.
Former New York Gov. Andrew Cuomo, an OKX board member and co-chair of OKXICE, addressed the corporate resistance during an October 20 press conference attended by Bitcoin.com News.
Cuomo described the SEC-backed initiative as an experiment, arguing that companies would differ in their willingness to participate in a new trading model. He suggested that some businesses would move quickly into tokenization while others would watch how the technology and market developed.
He also challenged the rationale for limiting U.S. equity trading to conventional market hours when investors operate across different time zones worldwide.
With 50 of its original 63 prospective issuers now registering opposition, OKXICE faces a substantially diminished selection of stocks for its proposed launch. The objections do not necessarily mean the companies oppose blockchain-based securities generally, but they underscore the resistance to third-party tokenization without direct issuer participation.
