Why McDonalds, Microsoft and Google saying no to tokenized stocks isn't a dealbreaker
Some of the world's biggest companies objected to being listed on the first tokenized securities trading venue under the SEC's innovation exemption. But the early pushback may say more about issuer caution than about rejection of tokenization itself.
Several major corporations have objected to having their shares traded on a new tokenized-securities venue being developed by OKX and Intercontinental Exchange (ICE). The list of objecting firms now includes 22 issuers, with well-known names such as Microsoft, Alphabet, Goldman Sachs, and McDonalds among them. This reaction, while surprising, is not necessarily a major setback for the SEC's experiment with tokenized stocks.
The process for companies to object to tokenized trading involves notifying the issuer and giving them 30 days to object; if they remain silent, trading can begin. Many companies are hesitant due to a lack of understanding about how tokenized shares would be held, how dividends and votes would be distributed, and how transfer agents would handle transactions.
Some, like Nasdaq, intend to object not because they oppose tokenization, but due to concerns about market structure and potential fragmentation of liquidity. The objections highlight the need for education and time for companies to become comfortable with the new trading models before they are willing to participate.
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