TLDR
SpaceX has objected to tokenized versions of its shares being listed on OKXICE, according to a Nov. 2 notice.
SpaceX is now one of 56 companies objecting to the listings, along with Tesla and Amazon.
The SEC’s Innovation Exemption gives companies 30 days to object to third-party tokenized trading of their shares.
Offshore SpaceX tokens from Backpack and Kraken recorded about $1.93 billion in onchain volume in June.
OKXICE co-chair Andrew Cuomo said on Oct. 30 that more companies will participate over time.
SpaceX has objected to the listing of tokenized versions of its shares on OKXICE, a new trading venue aimed at US investors. The company used a 30-day objection window that the Securities and Exchange Commission gave issuers under its new rules.
The objection was disclosed in a public notice from OKXICE dated Nov. 2. OKXICE is a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange.
SpaceX is now one of 56 companies that have objected to the proposed listings on the venue. Tesla and Amazon are also on that list.
How the Objection Process Works
The SEC introduced a five-year Innovation Exemption in September. It lets platforms such as OKXICE offer trading in tokenized versions of US stocks without registering as national securities exchanges.
The framework also gives listed companies a voice in the process. Companies have 30 days to object when a third party plans to offer tokenized trading of their shares.
An objection effectively keeps those tokens off the venue. This means a company can stop its stock from trading in tokenized form on OKXICE.
Tokenized stocks are blockchain-based versions of company shares. They let investors gain exposure to traditional stocks onchain, often around the clock.
Some tokens are backed by actual shares, depending on how they are built. However, the rights given to tokenholders can differ from those held by regular shareholders.
SpaceX Tokens Already Trade Offshore
The objection comes after tokenized SpaceX shares had already started trading on platforms outside the US. Those tokens have drawn heavy trading since the company’s public offering in June.
Before the listing, Backpack Securities and crypto exchange Kraken both prepared tokenized versions of SpaceX stock. Backpack is a stock brokerage and tokenization platform, and each product was designed to be backed by actual shares.
Backpack’s SPCX token recorded $1.08 billion in onchain trading volume in June. Kraken’s SPCXx token, offered through its xStocks product, recorded $852 million that same month.
Together, the two tokens handled about $1.93 billion in onchain volume in June. That activity made SpaceX one of the biggest drivers of onchain stock trading in recent months.
OKXICE differs from Backpack and Kraken because it would open tokenized stock trading to US investors. It would operate under the SEC’s new framework, giving it potential access to the world’s largest equity market by capitalization.
Nasdaq warned companies in September that they “must be cautious about their participation” in the venture. The exchange argued that tokenized stock trading could fragment liquidity and undermine long-term shareholder value.
OKXICE co-chair Andrew Cuomo, a former New York governor, told Cointelegraph on Oct. 20 that the venture expected more objections. He said companies were avoiding being the first to test the model.
Cuomo addressed the issue again at an Oct. 30 press conference. He said that as people see the benefits of tokenization, “you’ll see more and more companies participate.”
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