Large companies oppose trading in digital versions of their shares

Wells Fargo, Arm Holdings, and Intuit have joined the list of companies opposing the migration of their shares to the blockchain. Already 22 companies hold this position, including Microsoft and Alphabet.

Tokenization creates a digital version of a regular share that can be traded on the blockchain. The joint platform of OKX and Intercontinental Exchange wanted to create similar products for the shares of 63 companies. One advantage of this model is that trading would be possible nearly around the clock, and transactions would take less time to settle.

Under the new rules set by the US Securities and Exchange Commission, such platforms are exempt from some of the requirements imposed on traditional exchanges, but a digital version of a company's shares cannot be created without its consent. If the company objects, the project will be halted.

According to Nasdaq, insufficient regulation could damage the normal process of share trading and price formation. Under the new requirements, the holder of a digital share must have voting and dividend rights similar to those of a regular share.

Source: Reuters