Figure Co-founder Questions Viability of OKXICE Tokenized Stocks

Cagney’s assessment, shared in an October 19 post, highlights a discrepancy between his count of 10 objectors and the nine firms officially identified in the venue’s October 15 public notice. The list of companies resisting the platform includes Cerebras Systems, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon Communications, Applied Optoelectronics, Broadcom, and UnitedHealth Group.

The friction stems from the strict regulatory framework governing these assets. Under SEC mandates, venues qualifying for tokenization exemptions are explicitly prohibited from extending credit to participants, barring the use of leverage or securities lending. While Cagney acknowledges that these tokens could provide issuers with the benefit of marginal buyers—supported by underlying DTC shares—he contends that the lack of financing options makes the product less competitive than traditional national markets.

Unlike offshore synthetic products that offer only price exposure, the proposed OKXICE tokens must provide equivalent shareholder rights, including voting capabilities and dividends. The venue, a joint venture between OKX and ICE co-chaired by Andrew Cuomo and Trabue Bland, relies on a one-for-one backing model where each token represents a security entitlement. Despite this structure, Cagney remains skeptical, suggesting that without the ability to leverage or borrow stocks, the venue struggles to offer a meaningful improvement over existing financial instruments.