Crypto’s bid to shake up stock trading revs up despite backlash

Résumé détaillé

Even as many of the companies whose shares are being targeted for tokenised trading are pushing back.

Crypto’s race to grab a slice of the US stock market is picking up speed even as many of the companies whose shares are being targeted for tokenised trading are pushing back.

A stock-token platform run by OKXICE, a joint venture between cryptocurrency exchange operator OKX and New York Stock Exchange parent Intercontinental Exchange, plans to launch November 23. More than 70 digital assets tied to stocks and exchange-traded funds will be listed, though all won’t be available at the start. Its ambitions to include blue chips such as McDonald’s Corp, Coca-Cola Co and JPMorgan Chase & Co were thwarted after the companies objected to having their shares traded on the venue.

The pushback highlights an early hurdle for the nascent market, as companies weigh the promise of tokenisation against concerns about how their shares would be represented and traded on unfamiliar venues.

The opposition has been widespread. Of the 62 companies originally targeted by OKXICE, 56 objected, leaving just six without disclosed objections, including Coinbase Global, Strategy and Robinhood Markets. All six have ties to the crypto industry. In total, 67 companies have objected to OKXICE’s plans, including some outside its original list.

The venue also plans to offer 59 ETFs from Direxion, one of the biggest leveraged and inverse ETF providers.

Andrew Cuomo, former governor of New York and co-chair of OKXICE, said the launch is part of an evolution in markets that will shift toward 24/7 trading that investors, both retail and institutional, will need to follow. “The cat is out of the bag,” he said in an interview. “The cat is consumer demand, and you can see companies shift toward, ‘we better get ahead of this new technology and this new market structure.’ ”

The NYSE and Nasdaq are planning to launch extended trading hours next month. Crypto, which trades continuously, has shifted Wall Street’s outlook to expect instant, nonstop market access.

OKXICE was among the first to apply with the Securities…

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