Tokenized stocks took a step toward mainstream trading as OKXICE notified the U.S. Securities and Exchange Commission (SEC) that it plans to launch a venue listing digital representations of more than 60 companies traded on U.S. exchanges. The joint venture’s co-chair, former New York Governor Andrew Cuomo, announced the move on X.
The venue aims to enable around-the-clock trading and faster settlement by issuing tokenized versions of traditional shares on a blockchain. The initiative builds on the SEC’s Sept. 17 “Innovation Exemption,” which permits qualifying venues to trade tokenized U.S. equities under defined conditions.
What is OKXICE launching and how would tokenized stocks trade?
OKXICE plans a trading venue listing tokenized versions of more than 60 companies already listed on U.S. stock exchanges. These tokenized stocks are digital counterparts of regular shares recorded on a blockchain, allowing trading beyond normal market hours and enabling faster settlement than conventional equity market infrastructure.
By placing equity representations on-chain, the venue targets continuous market access and reduced post-trade friction. While traditional stocks concentrate liquidity during set sessions, tokenized equities can match buyers and sellers outside those windows. The initial universe will start with over 60 names, with the joint venture indicating it intends to operate within the SEC’s new framework.
How does the SEC’s Innovation Exemption enable this move?
The SEC issued its “Innovation Exemption” on Sept. 17, allowing qualifying venues to trade tokenized U.S. stocks subject to specified criteria. OKXICE’s plan is built on this exemption, providing a regulatory pathway to list on-chain equity representations while maintaining compliance expectations for U.S. securities trading.
The exemption establishes a mechanism for venues to pilot tokenized stock trading under the agency’s oversight, rather than operating entirely outside conventional rules. With a formal notice to the regulator already delivered, OKXICE signals intent to proceed within the scope the SEC outlined. Cuomo publicly highlighted the development on X.
Event | Date | Detail |
|---|
SEC issues Innovation Exemption | Sept. 17 | Permits qualifying venues to trade tokenized U.S. stocks |
OKXICE notifies SEC | Not disclosed | Plans a venue listing 60+ tokenized U.S.-listed companies |
Public announcement | Not disclosed | Co-chair Andrew Cuomo announces the move on X |
What could change for investors if trading runs around the clock?
Tokenized stocks can trade beyond standard U.S. market hours and settle faster, potentially improving liquidity for global participants and shortening the time capital remains tied up in post-trade processes. For investors, that may mean more flexible execution windows and reduced operational frictions versus traditional equity settlement cycles.
Extended access can help price discovery reflect information released outside the bell-to-bell window. Faster settlement on-chain can compress back-office timelines. The practical impact will depend on the venue’s liquidity, eligible assets beyond the initial 60-plus names, and how the framework aligns with existing brokerage and custody workflows.
What should market participants watch next?
Key milestones include regulatory feedback on OKXICE’s notice, the finalized list of more than 60 U.S.-listed companies, and operational specifics of the venue’s trading and settlement model. Market participants should also watch whether additional venues seek to operate under the Sept. 17 Innovation Exemption, potentially broadening tokenized equity access.
Further clarity on onboarding, investor eligibility, and interoperability with existing equity market infrastructure will determine uptake. With a public signal from co-chair Andrew Cuomo and a formal notification to the SEC, the next updates will likely focus on launch timing, compliance parameters, and how after-hours liquidity develops.
If implemented as outlined, tokenized stocks could establish a new, regulator-acknowledged channel for equity trading that runs outside the traditional clock while aiming to shorten settlement.
