OKX and the Intercontinental Exchange (NYSE:ICE), the parent of the New York Stock Exchange, have filed with the Securities and Exchange Commission (SEC) to offer 24/7 trading of tokenized securities.
According to a post by OKX, the partnership would first focus on trading 60 US-listed stocks, including NVIDIA, SpaceX, Apple, and Palantir. These are some of the most liquid securities in the world.
Intercontinental Exchange acquired a stake in OKX in March, with the joint venture combining OKX‘s blockchain capabilities with ICE’s market infrastructure expertise.
Andrew Cuomo, co-Chair of OKXICE, said their Tokenized Securities Venue (TSV) is filed under the SEC’s Innovation Exemption. Cuomo called the partnership a step forward toward a global 24/7 Wall Street and keeping digital finance leadership in the US.
“The digital asset revolution is already transforming our financial system. Tokenized securities are part of what comes next. And we’re just getting started.”
The public notice regarding the TSV has an October 4th filing date.
The notice explains:
OKXICE TSV provides permissioned automated market maker (AMM) Liquidity Pools through which TSV Participants may buy and sell Tokenized NMS Stock in pairs with supported payment stablecoins.1 The AMM Liquidity Pools are Uniswap v4 liquidity pools deployed on XLayer, to which OKXICE TSV adds its own smart contract extension (the OKXICE TSV Hook) that enforces permissioning. Only wallets holding a valid soulbound token (SBT) issued by OKXICE TSV, as described under Permission Trading Access Eligibility below, may trade in or provide liquidity to an AMM Liquidity Pool, and only OKXICE TSV may create AMM Liquidity Pools using the OKXICE TSV Hook. OKXICE TSV does not operate an order book, does not hold or take custody of TSV Participants’ assets, does not extend credit, and does not conduct primary offerings of securities.
Eligible participants include both institutions and retail investors, all of whom must submit to a KYC/CFT review.
The filing includes a complete list of initial securities.
Tokenized assets, or digital securities, are broadly expected to become the norm, not the exception. In the works for years, the process has taken time because of regulatory hurdles and institutional friction. Change within the highly regulated securities industry takes time.
Additionally, tokenized assets can benefit from certain automations and, eventually, more novel assets that are historically difficult to turn into investable assets. By offering tokenized securities, OKXICE delivers a service that benefits from its association with a global, trusted brand at a time when the SEC is embracing beneficial innovation rather than impeding it, as exemplified by the Biden Administration.