Microsoft, Alphabet and other major companies are pushing back on plans to let investors trade blockchain-based versions of their shares. These “tokenized stocks” could make it easier to buy fractions of a share and trade outside regular market hours. But companies now have an opportunity to object under new SEC rules, raising a question that technology alone cannot answer: what would make them comfortable participating?

The SEC gives issuers an opportunity to object

On Sept. 17, the SEC issued a five-year, conditional exemption allowing qualifying platforms to offer blockchain-based trading of U.S.-listed stocks without registering as traditional stock exchanges. The rules limit which securities can trade and how much trading these platforms can handle.

The conditions matter. Tokens must give holders the same rights as the underlying shares, including dividends and voting, and products that only offer synthetic price exposure are excluded. Before trading a stock tokenized by an unaffiliated third party, a venue must notify the issuing company, which then has 30 days to object. If it does not object, trading can begin once the notice period and other requirements are satisfied. The objection applies to that venue, not to tokenization of the company’s shares everywhere. The framework is an opt-out system, not a requirement that platforms obtain affirmative issuer consent.

OKXICE, the joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, filed in early October with plans to offer tokenized shares of an initial 63 public companies. Early objections included Broadcom, Verizon and UnitedHealth. Microsoft, Alphabet, Goldman Sachs, Caterpillar and McDonald’s followed. By Oct. 27, the total had reportedly reached 26, including IBM, Oracle, Intel and IonQ.

Nasdaq also said it would object to tokenized versions of its own stock under the current exemption, even though it supports tokenization and is pursuing an exchange-based model. Its concern is market structure: trading outside the national market system could fragment liquidity and weaken price discovery.  

Companies have questions about shareholder rights

Those objections are easy to read as a rejection of tokenization. They may also reflect reluctance to accept an unfamiliar trading arrangement on a short deadline. The Oct. 23 document reviewed by Reuters did not explain why the 22 companies objected, so their reasons should not be assumed.  

The decision nevertheless has consequences. The SEC order does not provide an express mechanism for issuers to object after the 30-day window has closed. As CoinDesk reported, companies reviewing these notices face questions about the custody of the underlying shares and how shareholder rights will be administered. An objection gives an issuer time to assess those arrangements without allowing trading to proceed on that venue.  

The public dispute between AMC and Robinhood shows why issuers care. Robinhood’s Stock Tokens are debt securities issued by its Jersey affiliate that provide economic exposure to underlying stocks without giving holders ownership or voting rights in those companies. AMC CEO Adam Aron publicly objected and called on Robinhood to stop trading tokens tied to AMC shares. Robinhood has defended the structure, saying its tokens are backed by underlying shares. The disagreement highlights a distinction investors need to understand: a token that carries a ticker is not automatically a share.  

Tokenized stocks are finding an audience

As of Oct. 27, RWA.xyz showed approximately $3.6 billion in distributed tokenized stock value and 4.4 million holders, both higher than 30 days earlier. Its dashboard includes ETFs and synthetic representations, so those figures cover products with different ownership rights. The holder total should not be read as a count of unique investors.

Dune reported more than $37 billion in onchain trading of tokenized stocks and ETFs in the third quarter, with monthly volume up almost 18 times since January. That activity shows the market has developed beyond small pilot programs, although trading volume alone does not establish how widely the products are being adopted.  

The IMF found that more than half of trading in the tokenized equity markets it studied occurred outside traditional market hours. Most transactions involved less than a full share, pointing to interest in fractional access as well. But the IMF also found that tokenized markets remained less liquid and more volatile than their traditional counterparts. The ability to trade while U.S. exchanges are closed comes with trade-offs.  

Institutional development continues

The infrastructure keeps advancing. DTCC completed live production trades using tokenized DTC-held assets in July and scheduled the launch of its tokenization service for October. NYSE has also been developing its own tokenized trading platform, with Securitize named as the first digital transfer agent eligible to mint securities for corporate and ETF issuers on the planned venue. 

For investors, the key distinction is not simply whether a product trades on a blockchain. It is whether the token carries shareholder rights or provides exposure through a separate legal instrument. For issuers, the framework raises practical questions about ownership records, shareholder communications and trading across separate markets.

Tokenized stocks have become a real product category. The next phase will turn less on whether shares can move onchain than on which legal and market structures companies and investors are willing to use.

Disclosures: This article is for informational purposes only and should not be considered financial, legal, tax, or investment advice. It provides general information on cryptocurrency without accounting for individual circumstances. Sarson Funds, Inc. does not offer legal, tax, or accounting advice. Readers should consult qualified professionals before making any financial decisions. Cryptocurrency investments are volatile and carry significant risk, including potential loss of principal. Past performance is not indicative of future results. The views expressed are those of the author and do not necessarily reflect those of Sarson Funds, Inc. By using this information, you agree that Sarson Funds, Inc. is not liable for any losses or damages resulting from its use.