Elon Musk's SpaceX and Tesla Join Amazon in Opposing OKXICE Tokenized Stocks Plan

Amazon, Tesla, Netflix, SpaceX, SoFi Technologies, and Lam Research are the latest companies to oppose OKXICE’s plans to tokenize U.S. stocks, bringing the total number of objecting firms to 56, according to a Nov. 2 public notice.

The growing resistance includes 49 of the 62 companies initially selected for the platform, representing approximately 79% of the original targets. OKXICE’s proposed lineup includes 63 stocks from 62 companies because Google parent company Alphabet appears twice through its two share classes, GOOG and GOOGL.

Another seven companies that were not included in the original lineup have also filed objections, expanding the opposition beyond the securities OKXICE initially proposed to offer.

Amazon and the Elon Musk-led Tesla and SpaceX are among the most prominent additions in the latest notice, joining other technology giants that have already rejected the initiative. Netflix adds a major streaming company to the opposition, while SoFi Technologies is notable for its involvement in cryptocurrency and digital financial services. Semiconductor equipment manufacturer Lam Research rounds out the latest group.

The objections present a challenge for OKXICE, a venture involving cryptocurrency exchange OKX and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange. Its planned platform would allow investors to trade blockchain-based representations of U.S. stocks around the clock, including outside traditional exchange hours.

The platform is pursuing its plans under temporary regulatory relief introduced by the Securities and Exchange Commission in September, which establishes a framework for qualifying tokenized securities offerings while allowing companies to formally object.

Objections Extend Beyond Original Targets

Corporate resistance has accelerated in recent weeks as more major businesses have formally opposed the plan.

Bitcoin.com News reported Monday that Nvidia, Costco, Nike, Reddit, CrowdStrike, and Palo Alto Networks were among 12 companies added in the previous public notice, bringing the running total to 50 before the latest six objections. Other previously reported objectors include Walmart, Eli Lilly, Coca-Cola, JPMorgan Chase, Microsoft, Goldman Sachs, Oracle, Intel, IBM, and McDonald’s.

Notably, seven of the 56 companies that have objected were not included in OKXICE’s original proposed lineup. Those companies include Cerebras Systems, Arm Holdings, Wells Fargo, Arcos Dorados, Cigna Group, bitcoin mining firm IREN, and Palo Alto Networks.

Their objections suggest that concerns about the potential tokenization of company shares extend beyond the businesses specifically identified in OKXICE’s initial plans. The public notices do not detail the individual reasons behind the objections, and opposing a particular platform’s proposal does not necessarily indicate opposition to blockchain-based securities more broadly.

Former New York Gov. Andrew Cuomo, an OKX board member and OKXICE co-chair, previously addressed the growing resistance at an Oct. 20 press conference. He characterized tokenized equity trading as an emerging market development and suggested that companies would adopt the technology at different speeds as its benefits became more apparent.

Cuomo also questioned why U.S. stock markets continue to operate within conventional trading hours when financial activity increasingly takes place globally and around the clock.

Despite the project’s ambitions, only 13 of the original 62 targeted companies have yet to register disclosed objections. The broadening opposition raises questions about how extensively OKXICE will be able to roll out its proposed offering, and whether the initiative will need to be adjusted to accommodate corporate resistance.

The deadline for objections is nearing, however, as companies had 30 days to indicate their resistance following the initial Oct. 4 public notice.