Microsoft and Others Tell Crypto Platform Not to Tokenize Their Stocks

A growing number of publicly traded companies are rejecting plans to create blockchain-based versions of their shares. At least 22 firms, including Microsoft, Alphabet, McDonald’s, Goldman Sachs, Wells Fargo, Qualcomm, and Caterpillar, have formally objected to OKXICE’s proposal to offer tokenized versions of 63 U.S.-listed stocks. The venture, linked to crypto exchange OKX and Intercontinental Exchange, says the tokens could trade around the clock. Some companies say the framework is untested, with uncertain effects on share prices, liquidity, and volatility, and worry investors could mistake a listing for the company’s endorsement. AMC’s CEO has separately condemned Robinhood for issuing tokens tied to AMC stock without its approval.

Under a temporary SEC exemption, platforms must notify companies, which have 30 days to object; silence lets a platform proceed. An objection blocks tokenization only on that particular platform, not through other services or arrangements, and the rules do not clearly explain whether a company can object after the deadline. The exemption lasts five years and requires tokens to carry the underlying shares’ rights, including dividends and voting. Supporters promise wider access and continuous trading, while critics argue blockchain is not necessary for either feature and that tokenization may chiefly benefit centralized firms seeking new revenue or regulatory advantages. The dispute also exposes the fragility of the current approach: a future administration could reverse SEC policy, while crypto companies continue lobbying Congress for rules that would secure their preferred framework.