OKX-ICE venture details permissioned tokenized stock venue

Tokenized stock trading is moving into U.S. regulatory frameworks as crypto and traditional-market firms test on-chain venues. On Oct. 4, OKXICE, a joint venture between OKX and Intercontinental Exchange (ICE), notified the SEC of plans to operate a tokenized securities venue on XLayer, according to the OKXICE public notice.

The filing sets out a permissioned, automated-market-maker model for trading tokenized shares, subject to the SEC’s temporary conditional exemption.

How will trading work on XLayer?

The notice says OKXICE will use Uniswap v4 liquidity pools deployed on XLayer, with a smart-contract extension that restricts access to approved wallets. Participants must complete identity, sanctions and wallet checks; approved wallets receive a non-transferable soulbound token that the contracts verify before trades and liquidity actions. Pools will pair tokenized stocks with USDC, USDG or USDT.

The venue will not run an order book or take custody of participants’ assets, the notice says. Instead, prices will be set through automated pools. The Block reported that the planned list includes more than 60 U.S.-listed companies, including Nvidia, Apple, Microsoft, Amazon, Coinbase, Robinhood and Circle, and that issuers have 30 days to opt out. OKXICE’s notice also records an objection from Cerebras Systems.

What does each token represent?

Under the notice’s described model, an unaffiliated tokenizer working through an SEC-registered broker-dealer and FINRA member holds the underlying shares one-for-one against tokens outstanding. Each token is described as a security entitlement to one share, with ownership and transfers recorded on XLayer and reconciled with the tokenizer’s books.

The notice says participants would mint or redeem tokens with the tokenizer using U.S. dollars or an approved payment stablecoin. For minting, the tokenizer routes an order for the underlying stock to an exchange or other permitted venue, confirms acquisition and custody, then issues tokens. OKXICE says the tokens must carry the same rights as the equivalent shares, including dividends and voting rights.

Does the notice mean the SEC has approved the venue?

No. OKXICE says the venue is not registered with the SEC for activities under the exemption, and that the commission has not passed on the merits or accuracy of the notice’s disclosures. The filing says the venue’s use of the exemption remains subject to SEC oversight; it does not announce a final approval.

The joint venture is owned equally by ICE and OKC USA Holding, according to the notice. ICE’s March announcement of its strategic relationship with OKX said access to ICE futures and NYSE tokenized equities through OKX would be subject to regulatory approval. The new notice describes one proposed mechanism for that broader effort, while leaving its operation contingent on the exemption’s conditions.

Sources

• OKXICE public notice — okx.com