Walmart among companies blocking their shares from the OKX-ICE tokenized stock venue, now 38 in total

A growing list of large companies does not want their shares traded on a planned tokenized stock venue run by crypto exchange OKX and ICE, the owner of the New York Stock Exchange.

What happened

Walmart, Eli Lilly, Cigna, Carnival and Arcos Dorados have objected to trading of their shares on the planned venue. That brings the total number of companies that have objected to 38.

Background

Tokenized stocks are digital tokens on a blockchain that represent ordinary shares. Supporters say they can be traded around the clock, settled almost instantly and split into small fractions, making shares easier to access worldwide.

Companies, however, are wary. When their stock trades as a token, they may lose some control over who holds it and how it is marketed. They also worry about investor confusion: a token may not give the same voting rights, dividends or legal protections as the share itself, and if something goes wrong, unhappy investors may still blame the company whose name is on it.

ICE runs some of the world’s most important markets, and OKX is one of the largest crypto exchanges, so their project has drawn close attention.

Why it matters

Tokenized stocks depend on cooperation from the companies whose shares are tokenized. When dozens of well-known firms opt out, the venue loses some of its most attractive assets, and the idea loses some of its momentum.

The objections also send a signal to regulators that companies want a say before their shares move onto blockchains. How OKX and ICE respond will show whether tokenized trading can win over corporate issuers.