More than 60 U.S. stocks including Nvidia and Tesla are headed onchain. Here’s how it works
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Crypto exchange OKX and Intercontinental Exchange (ICE), owner of the New York Stock Exchange, have filed plans for a 24/7 blockchain market for tokenized U.S. stocks including Nvidia, Tesla, Apple, and Microsoft. Each stock token will be backed one-for-one by an underlying share, with investors trading these tokens against blockchain-based liquidity pools using stablecoins. The platform enables trading outside traditional market hours, but corporate objections, liquidity issues, and limited regulatory relief could constrain adoption.
Why it matters
The development introduces a new market structure for U.S. equities, allowing tokenized one-for-one shares to be traded around the clock. This could test demand for non-stop stock trading and explore the viability of stock tokenization on blockchain technology. However, the source notes that institutional relevance and investor interest may be limited in the near term, and the regulatory relief is temporary, possibly affecting long-term participation.
Key context
The OKXICE joint venture plans to use blockchain technologies such as the XLayer blockchain and Uniswap’s decentralized exchange framework to enable stock token trading. The system replaces traditional buyer-seller matching with automated market makers (AMMs) or more actively managed liquidity pools that dynamically price stock tokens. Investors must undergo identity and anti-money-laundering checks. Some companies may object to their stocks being tokenized, as seen with Cerebras.
Key numbers and entities
More than 60 U.S. stocks are planned for tokenization, including Nvidia, Tesla, Apple, Microsoft, Amazon, Alphabet, Coinbase, Circle, Robinhood, JPMorgan, Goldman Sachs, Walmart, Netflix, Reddit, and Boeing. Stablecoins USDC, USDT, and USDG will be supported as trading currencies. The regulatory relief allowing this tokenized trading lasts five years.
What remains unclear
The source does not clarify the exact conditions or procedures for companies to object to tokenization beyond the mention of a 30-day window. It is also unclear how closely prices on the new platform will track traditional market prices during off-hours and how widely the venue will be adopted by retail and institutional investors. The long-term regulatory framework beyond the five-year relief period remains unspecified.