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

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

This is an excerpt from CoinDesk's new ‘Tokenization Weekly’ newsletter that will be launching soon. Sign-up details will be here when it goes live.

The SEC's new framework for tokenized stock trading looked, at first glance, roughly a month ago, like a fast track to putting U.S. equities on crypto rails.

A growing group of public companies has objected to having their shares traded on the tokenized-securities venue being built by OKX and Intercontinental Exchange (ICE), the owner of the New York Stock Exchange.

This week’s of objections included some of the biggest names yet: Microsoft (MSFT), Alphabet (GOOG, GOOGL), Goldman Sachs (GS) McDonalds (MCD) and three others on Monday, then Wells Fargo (WFC) and Cisco (CSCO) and four more firms on Friday rejected having tokenized versions of their shares traded on OKXICE, bringing the disclosed total now to 22 objecting issuers.

Seeing some of the world's largest companies say no may not exactly be the start that tokenization advocates had hoped for.

But it also isn't necessarily a major blow to the SEC's experiment.

Before trading in a company's shares, a venue must notify the issuer and give the issuer 30 days to object. If the company stays silent, trading can begin.

That gives public companies a say in whether unaffiliated third parties tokenize and trade their shares, but it also tilts the decision toward caution.

Global law firm Latham & Watkins has warned issuers that silence effectively becomes an irrevocable decision: the SEC order provides no mechanism to object after the 30-day window or withdraw a prior non-objection once trading begins.


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