Robinhood backs tokenization of its stock on OKX–ICE platform even as most companies opt out

Robinhood (HOOD) won’t stand in the way of plans by crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to trade tokenized versions of its shares, joining a small group of companies that haven’t opposed the venture after widespread issuer pushback.

A spokesperson confirmed to CoinDesk that the brokerage did not object to inclusion on OKXICE, making it the third company known to have taken that position, alongside Securitize (SECZ) and BitGo (BTGO).

“We think tokenization is the future of financial markets. We would rather be part of building it than sit on the sidelines,” the spokesperson said.

Robinhood’s decision helps clarify the potential lineup for the blockchain-based stock market venue whose initial selection has narrowed considerably. Of the 62 companies originally proposed for trading, 56 — about 90% — have objected to trading tokenized versions of their shares, according to a CoinDesk tally based on the venture’s latest public notice dated Nov. 5.

The six companies without a disclosed objection in that filing all have deep ties to crypto: Robinhood, Securitize, BitGo, stablecoin issuer Circle (CRCL), crypto exchange Coinbase (COIN) and bitcoin treasury company Strategy (MSTR).

A Circle spokesperson declined to comment on whether the company has objected. Coinbase and Strategy did not respond to requests for comment.

The venue would operate under the SEC’s five-year “innovation exemption,” which allows qualifying platforms to trade tokenized stocks through automated market makers — software that executes trades using pools of assets rather than matching buyers and sellers via an order book. It also requires venues to notify issuers if they plan to list their shares for trading, giving issuers the option to reject the listing within 30 days of notice.

Robinhood follows through

Robinhood’s decision follows its own feud with an issuer over stock tokenization.

In September, AMC Entertainment CEO Adam Aron threatened legal action over the brokerage’s tokens linked to AMC shares, arguing that they used the company’s name without consent, denied investors shareholder rights and could undermine its ability to raise capital. Robinhood defended its offering, while co-founder and CEO Vlad Tenev argued that issuers should not have veto rights against offering

Robinhood Stock Tokens differ from the shares OKXICE plans to offer. They provide exposure to stock prices without shareholder rights, are packaged as derivative products and offered via an offshore entity. Meanwhile, the SEC’s framework requires tokens traded on qualifying venues to carry the same rights as the underlying shares, including dividends and voting rights, while giving companies a 30-day window to opt out if they object to listing.

For companies notified on Oct. 4, when OKXICE published its initial plans, that objection period ended Nov. 3. Without a timely objection, the venue could make its tokenized shares available for trading, subject to the exemption’s other requirements.

The public list may still change, however. OKXICE has five business days to disclose an objection, meaning one received on Nov. 3 might appear as late as Nov. 10. Individual deadlines also depend on when each company received its notice.

The venue faced widespread pushback from many public firms, including global tech and financial firms such as Apple, Meta, Alphabet, Nvidia, Goldman Sachs and JPMorgan. Still, experts said the objections are more about companies taking a wait-and-see approach with the SEC’s experiment, rather than total rejection of tokenization.

OKXICE co-chairman Andrew Cuomo previously said companies outside the initial selection had approached the venture about joining, though he declined to identify them or provide a count. The firm has yet to disclose a launch date.