Growing List of Firms Object to OKX-ICE Tokenized Stock Plans (coindesk.com) 21
Intel, Oracle, IBM and IonQ have joined a growing list of companies objecting to having tokenized versions of their shares traded through OKX and Intercontinental Exchange's blockchain venture, bringing the total number of objections to 26. About 37% of the companies on OKXICE's original list have now opted out, according to CoinDesk. From the report: The four companies were named in an updated public notice (PDF) dated Monday, Oct. 26, from OKXICE, the two firms' joint venture. They join earlier objectors including Microsoft, Alphabet, Goldman Sachs, Cisco and Wells Fargo. The growing list underscores a hurdle for OKXICE and the SEC's new framework for tokenized stock trading: building a market that issuers are willing to join. The agency's five-year "Innovation Exemption" gives qualifying venues room to test round-the-clock blockchain-based trading of stocks, and it also gives public companies an option to block their shares from being offered.
OKXICE issued its initial public notice on Oct. 4, outlining plans to use Uniswap v4 liquidity pools on OKX's XLayer blockchain, with transactions settled in stablecoins. The venue would use automated market makers -- software that executes trades through pools of assets rather than matching buyers and sellers through a conventional order book. Under the framework, venues must notify issuers and give them 30 days to object before offering tokenized versions of their shares.
OKXICE issued its initial public notice on Oct. 4, outlining plans to use Uniswap v4 liquidity pools on OKX's XLayer blockchain, with transactions settled in stablecoins. The venue would use automated market makers -- software that executes trades through pools of assets rather than matching buyers and sellers through a conventional order book. Under the framework, venues must notify issuers and give them 30 days to object before offering tokenized versions of their shares.
scammers gonna scam (Score:4)
We are living in the Platinum Age of Scamming.
This is not about crypto (Score:3)
Rather, this is effectively about recording stock transactions on a blockchain. Nothing more and nothing less than swapping a distributed transaction log for a traditional ledger.
The implication is clear, the SEC is at least considering the idea of creating shares as a token cryptocurrency. In this case, the tokens are backed by real shares. That's not a technical requirement, though, and a future company might someday skip the major exchanges entirely to list only as a token. To be clear, there's nothing sacred about the exchanges and their "house rules"; there's nothing inherently wrong with using a blockchain vs a ledger; and to reiterate, this has nothing to do with "buying stocks with Bitcoin".
On that last point, I consider OKXICE's decision to accept payment in some nondescript "stablecoins" as extremely unfortunate. Not because I'm a cryptophobe, but because it muddies the waters as to the viability of the core concept of tokenized equity itself - Though that's a bit of a tautology, given stocks are already "tokenized equity". Whether we denominate them in USD or BTC or cowrie shells is an entirely separate issue.
Re: This is not about crypto (Score:3)
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That's nowhere near true. The current system is administered by regulated entities that have a decent amount of information about most owners. Are there ways to play the system? Yes. But it's nowhere near the same level of anonymity and flexibility as making stocks into tokens that can be freely transferred to anonymous accounts.
Re: (Score:2)
Re: This is not about crypto (Score:2)
Re: This is not about crypto (Score:2)
Caveat emptor.
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I'm not an expert in any of this, but my understanding was that blockchains were good at (a) being distributed and (b) holding the value of the asset directly on the blockchain. For example, the blockchain holds the actual bitcoins I just mined.
However, the blockchain doesn't hold the actual shares - it might hold a serial number of a given share, but not the actual share itself. Therefore, you can imagine a way that I might buy some tokenised shares, and sit back to count my money. You buy the same physica
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WTF does that mean? A blockchain holds numbers. That's it. There's no such thing as "a bitcoin." Bitcoins are numbers. The Bitcoin blockchain has a mechanism where transactions (not bitcoin) are trackable, but that's definitely not the same thing as "value."
What is this? A share is a portion of a company. There used to be certificates that said you owned some number of
Tokenized three card monte :o (Score:2)
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Ok look, I'm mostly with you here... but Three Card Monte is completely different than the Shell Game. They are both scams and they both have a series of special moves. They both work better with one or more helpers to really bring the suckers.
In Three Card Monte, the Queen or single card is always there, it just moves around in perhaps unexpected and/or unnoticed, and definitely in unfindable ways.
In the shell game, there may be times, if momentarily, when the pea is not actually under any of the shells, m
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I think this demonstration explains how an exchange that does not do 1-to-1 trading works:
https://www.youtube.com/watch?... [youtube.com]
So... (Score:2)
Maybe because this is a _really_ bad idea? (Score:2)
I am a bit surprised. I though at this time only complete idiots were still into crapcoins and irrational awe of the blockchain. Apparently not.
Silly question (Score:2)
How does this differ from the wheat board or wool board? Where, a government department guarantees a price but another country undercuts its price and then, the government has tons of product it can't sell.
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That was my take too. If it weren't el Bunko's SEC, I'd say it might have merit. Since it is, I cannot be arsed to pay it any attention. This seems yet another of his schemes to profit off crypto.
Rationales & (dis)advantages (Score:2)
I have to think a bit to organize why and advantages and disadvantages of this, so I thought I'd share.
I define "tokenizing shares" as using a distributed blockchain with universal ability to transact as a way to trade shares.
Advantages of tokenizing shares:
* Universal access to fractional trading, not just inside a single trading platform. (Most likely, anyway.)
* Near zero transaction costs outside the spread. There are trading platforms that offer $0 commissions for regular retail customers, but there's
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in addition to what you listed, there's also issue with ownership. you don't own something because a blockchain says you do. you own shares because there's a record of YOU in the company records (they know who to send dividends to, and who to gather votes from to elect the board). most folks own shares in street-name, so the company sees Fidelity (or whoever is your broker) as the "owner"... fidelity passes on dividends, and makes you do proxy voting.
In this case, you're just swapping a regulated broker (li