Tokenized stock venue on Canton could beat OKX–ICE to first trade under SEC framework

A stock-trading venue on the Canton Network could beat the joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE) to the first trades under the Securities and Exchange Commission’s new tokenization framework, starting with a company that wants its shares onchain.

Canton Strategic Holdings (CNTN) said Thursday it agreed to make its common stock available on TSV LLC, with trading expected to begin as soon as Monday.

The Nasdaq-listed company has engaged SEC-registered onchain transfer agent Fairmint to issue the tokenized shares and maintain their official ownership records.

The arrangement takes a different route from the third-party tokenization model that has drawn a wave of objections to OKXICE’s proposed listings. Canton Strategic Holdings is sponsoring the tokenization itself, allowing TSV to avoid the 30-day issuer notice-and-objection process that applies when unaffiliated parties tokenize a company’s stock.

That offers an early test of another approach to bringing equities onchain: securing a company’s participation upfront. It requires cooperation from the issuer and its transfer agent, but removes the uncertainty over whether the company will block trading.

Read more: Why McDonalds, Microsoft and Google saying no to tokenized stocks isn't a dealbreaker

Starting with a willing issuer

TSV published its initial venue notice on Sept. 23, before OKXICE’s Oct. 4 notice. The waiting period following TSV’s initial public notice has already elapsed.

“We were the first to formally notify the SEC of our intent to operate a tokenized securities venue, and we wanted our first listing to set the standard,” TSV CEO Ali Abrar said in a statement.

Both venues intend to operate under the SEC’s five-year “Innovation Exemption,” which allows qualifying platforms to trade tokenized U.S. stocks through permissioned automated market maker pools. The issuer objection requirement applies specifically to third-party tokenization.

TSV will use the Tradecraft protocol on Canton to offer round-the-clock trading to approved institutional and retail participants. Trades would settle atomically, meaning the shares and payment change hands together.

Fairmint will administer transfer compliance, and token holders will receive the same rights and privileges as investors holding CNTN shares through Nasdaq, the company said.

“Tokenization creates more efficient access to equity markets for investors and greater transparency for issuers, and the SEC’s Innovation Exemption has set up the framework to bring tokenized U.S. equities onshore,” said Mark Wendland, Chairman and CEO of Canton Strategic Holdings.