Andrew Cuomo Says Corporate Opposition to Tokenized Stocks is a Normal Reaction
Andrew Cuomo, co-chairman of the okxice joint venture, stated that it is a very normal reaction for issuers to oppose their stocks participating in tokenized trading, and that companies choosing to wait and see is expected. The increasing number of companies rejecting tokenized versions of trading is a foreseeable situation in the process of testing new market structures.
Cuomo, who is also a board member of okx and a former governor of New York, mentioned during a media conference call on Tuesday that the model is designed to give companies the autonomy to decide whether to participate, allowing them to choose to join or withdraw. He added that due to the significant and disruptive nature of this change, many companies would prefer to wait for developments rather than be among the first participants.
A public notice released on Monday showed that a total of 16 companies oppose the trading of their stocks' tokenized versions on the okxice platform. This platform is a joint initiative between cryptocurrency exchange okx and the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE). The newly disclosed seven opposing companies include Microsoft, Alphabet, Goldman Sachs, Qualcomm, Caterpillar, McDonald's, and Western Digital.
Previously opposing companies include Broadcom, Verizon, UnitedHealth Group, and CoreWeave. Okxice initially planned to trade tokenized stocks of over 60 publicly listed U.S. companies, with about a quarter now having expressed opposition. According to SEC guidelines, timely opposition can exclude third-party tokenized versions from trading venues.
The platform plans to offer 24/7 trading on okx's x layer in a permissioned manner, pairing stock tokens with stablecoins. Cuomo emphasized that the SEC's innovation exemption framework sets limits on the number of participating companies and trading volume, essentially functioning as a sandbox experiment, and that companies waiting and seeing do not hinder overall progress.
The opposition from companies mainly involves uncertainties regarding pricing mechanisms, investor protection, custody arrangements, and shareholder rights. Supporters gain liquidity and global trading window advantages through early participation, while observing companies avoid brand and legal risks before rules are fully clarified.
Source: Public Information
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Andrew Cuomo has been consulting for okx since 2023 and will serve as co-chairman of the joint venture after ICE and okx establish a 50:50 joint venture in June 2026, joining the okx board. ICE previously invested in okx at an estimated valuation of about $25 billion, aiming to integrate traditional exchange infrastructure with crypto trading technology to launch a tokenized U.S. stock trading venue under the SEC's innovation exemption.
In terms of capital pathways, ICE extends its clearing and market position to on-chain stocks through the joint venture, while okx gains access to U.S. compliance channels and traditional institutional clients. The list of opposing companies has grown from an initial nine to sixteen, covering technology, finance, and consumer giants, reflecting issuers' desire to retain control in third-party tokenization.
This is similar to the cautious stance of some issuers regarding market makers and derivative structures during the early launch of ETFs, as well as the traditional institutions' cautious attitude during the initial listing of Bitcoin futures. Currently, tokenized stocks are in a regulatory sandbox pilot phase, transitioning from purely third-party issuance to a hybrid model allowing issuers to tokenize themselves.
Essentially, this involves a transfer of pricing power and restructuring of the industry chain: third-party platforms attempt to create 24/7 liquidity without altering the underlying equity registration, but issuers retain veto power over brand and trading structure through an opt-out mechanism. Mechanically, the SEC exemption grants platforms priority while balancing issuer risks with the right to oppose, ultimately forming a structure of 'run first, negotiate later.'
ABAB News · Cognitive Law
New markets first grant exit rights, then discuss who is willing to stay
Waiting is not rejection; it is passing the risk to pioneers
The higher the sandbox limit, the longer the opposition list