Nine US public companies have formally rejected OKXICE’s plans to trade tokenized versions of their shares on a blockchain network. According to an announcement on October 15, 2026, objections came from Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom, and UnitedHealth Group. Out of 63 securities initially prepared, nine names were promptly removed from the list before trading commenced.
The move highlights that regulatory clearance is not enough to pave the way if issuers choose not to participate.
A 30-Day Veto Right Under SEC Clearance
OKXICE is a joint venture planning to launch a Tokenized Securities Venue (TSV) - a blockchain-based trading platform for US equities operating 24/7. The platform’s legal foundation rests on an exemption issued by the Securities and Exchange Commission (SEC) on September 17, 2026. The legal framework allows the venue to offer US stocks as digital tokens, while granting issuers the right to file written objections within 30 calendar days of receiving notice.
The SEC regulation gives direct effect to such objections: a formal rejection letter submitted within the 30-day window automatically prevents the venue from offering the shares in question. The exchange operator is also required to disclose the objections publicly within five business days.
Issuer pushback mounted gradually throughout October 2026. Cerebras Systems filed the first objection in an October 4 announcement. Four days later, an October 8 update included objections from AppLovin, Applied Digital, and Rocket Lab. Culminating in the October 15 announcement, five more companies submitted formal letters: CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom, and UnitedHealth Group.
Why Are Issuers Wary of Tokenization?
According to a report by Barron’s, corporate concerns center around three issues: stock price volatility, market liquidity, and investor understanding of tokenized shares. Applied Optoelectronics specifically questioned price fluctuations that could potentially harm the market. The optical semiconductor firm also highlighted reputational risks, particularly the concern that investors might mistakenly believe the issuer directly endorsed or issued the circulating tokens.
These concerns emerged despite the legal framework ensuring that tokenholders enjoy rights equivalent to traditional shareholders. Investors in tokenized shares are entitled to dividends, voting rights on corporate actions, and asset claims upon liquidation. However, these guaranteed rights have yet to alleviate management anxieties over price stability in crypto markets.
Doors Remain Open Elsewhere
The objections from these nine issuers apply strictly to the OKXICE platform. The SEC’s ruling does not bar other companies or different venues from proposing and listing tokenized shares of these nine issuers in the future. The veto exercised is platform-specific, rather than an outright ban on tokenizing the assets in question.
For market participants looking forward to round-the-clock stock trading on the blockchain, this dynamic illustrates the real-world limits of current financial infrastructure: SEC approval is merely the first step, while issuer buy-in remains the ultimate key.
Reported by crypto.news.
Read also: How to Read Candlesticks for Beginners
Read also: Kraken Parent Acquires EU-Licensed Bank - IPO Target Pushed Back to 2027
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
