NYSE owner and crypto exchange OKX seek SEC clearance for tokenized U.S. stock trading

OKX, a crypto exchange, is in talks with ICE, the parent company of the New York Stock Exchange, to seek approval from the Securities and Exchange Commission (SEC) for a platform that would facilitate tokenized trading of U.S. stocks 24/7. The venture, named OKXICE, has filed with the SEC to launch a blockchain-based system for trading tokenized shares of over 60 U.S. stocks and to allow users to conduct transactions using stablecoins, cryptocurrencies tied to the value of the U.S. dollar.

Each token would be backed by an actual share representing ownership of the underlying stock. Trading would take place on XLayer, a blockchain network connected to OKX, under a new SEC exemption that permits regulated on-chain stock trading platforms. This announcement follows the joint venture's formation just three months ago, as Fortune reported that Andrew Cuomo, the former New York governor, would co-chair OKXICE.

ICE had invested $200 million in the crypto exchange in March, valuing it at around $25 billion. Cuomo stated that the market should never close, and ownership shouldn't be bound by office hours. Tokenized assets have gained significant traction in traditional finance, with the value of tokenized assets exceeding $35 billion this year, with tokenized stocks leading the growth.

The SEC's recent order allowed for such trading under a temporary exemption from certain regulations.