Wells Fargo, Intuit others object to their shares being tokenized- regulatory document

By Hannah Lang

WASHINGTON, Oct 23 (Reuters) - Six more companies including Wells Fargo WFC.N, Arm Holdings and Intuit INTU.O will not allow their shares to be "tokenized" on a joint trading platform backed by crypto exchange OKX and Intercontinental Exchange ICE.N, according to a regulatory document seen by Reuters.

The new objections, which have not previously been reported, underscore the growing challenges for tokenization, the creation of digital tokens that represent a stock and can be traded on a blockchain similar to cryptocurrencies, despite the US securities regulator recently approving the novel products.

Spokespeople for Arm and Intuit did not immediately provide comment. A spokesperson for Wells Fargo declined to comment.

The cryptocurrency industry has said stock tokenization could revolutionize markets by allowing shares to be traded 24/7 and settled instantly. OKX and ICE had planned to tokenize 63 stocks through their joint venture, dubbed OKXICE, but have encountered objections from issuers.

OKX and ICE filed with the US Securities and Exchange Commission earlier this month to launch tokenized stocks under the agency's new so-called innovation exemption. The exemption allows platforms that facilitate trading of tokenized stocks to operate without complying with many of the requirements that apply ​to traditional stock exchanges.

Under the exemption, platforms are required to notify companies before listing tokenized versions of their stocks, and cannot proceed if the issuer objects.

The total number of companies that have now objected is 22, according to the document, which outlines the rules of the OKXICE venture and which companies have objected.