TSV LLC completes its first issuer-sponsored tokenized stock trades on Canton using Tradecraft and Fairmint's infrastructure. 67 companies object to OKXICE's tokenization plans, including all
The first tokenized stock trading venue operating under the SEC's Innovation Exemption completed its initial trades this week. However, its launch comes amid objections from 67 companies against OKXICE's tokenization plans. The dispute highlights growing differences over who can authorize tokenized shares and how companies' stocks enter blockchain markets.
https://twitter.com/EleanorTerrett/status/2119593638531596332?a=vtr6UYOXOwuDpPtM0AM&s=20According to Crypto in America, TSV LLC facilitated its first trades Wednesday involving issuer-sponsored shares of Canton Strategic Holdings (CNTN). The transactions used a permissioned pool on Tradecraft, an automated market maker protocol.
The Canton Network handled atomic settlement, while Fairmint recorded the tokenized shares and maintained ownership records. Fairmint operates as the SEC-registered transfer agent. Existing shareholder Five North sold the shares, DRW Cumberland purchased them, and Flowdesk provided liquidity.
Meanwhile, 67 companies have formally opposed OKXICE's proposal to tokenize their shares. The joint venture involves crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange.
Of the original 62 proposed companies, 56 objected. Only Strategy, Robinhood, Coinbase, Circle, Securitize and BitGo have not objected. Eleven additional companies outside the original proposal also raised objections.
The objectors include all seven Magnificent Seven companies, alongside Walmart, JPMorgan, Coca-Cola, Eli Lilly, Boeing and McDonald's.
The dispute centers partly on how platforms obtain permission to tokenize shares. TSV uses issuer-sponsored tokenization through an authorized transfer agent. Conversely, OKXICE relies on an unaffiliated third party.
Applied Optoelectronics warned that investors could misunderstand its involvement in offerings it never sponsored. JPMorgan also expressed support for tokenization but opted out of OKXICE's proposal at this stage.
Additionally, Nasdaq has opposed TSV's framework and favors an issuer-centric approach within existing regulated equity markets. Crypto in America also reported that another upcoming venue plans to require issuer consent before tokenization. Unlike OKXICE, that approach would secure company approval before listing shares.
