CoreWeave and Broadcom Push Back on Tokenized Shares in SEC Test
CoreWeave and Broadcom have objected to plans to turn their shares into blockchain tokens after a request from OKXICE, a joint venture between crypto exchange OKX and Intercontinental Exchange. The Information reported the objections on Oct. 15.
Those objections are the first test of a temporary framework the U.S. Securities and Exchange Commission set up last month. On Sept. 17, the SEC issued an Innovation Exemption to allow trading of tokenized NMS stocks, meaning ordinary U.S.-listed shares in token form, and asked for public comment. SEC
Under that exemption, tokenized stocks can only trade on an approved tokenized securities venue, with limits on how many stock symbols can be offered and how much volume can trade. The SEC did not make this a permanent rule. It described a limited pilot with a comment process attached.
The SEC's design favors tokens backed one-for-one by real U.S. shares held in custody, rather than synthetic products that simply track a share price. Those tokenized stocks can trade through automated market makers (AMMs), which are software pools that buy and sell using preset formulas instead of a traditional order book. CoinDesk
That backed-versus-synthetic split follows earlier staff guidance. On Jan. 30, the SEC's Division of Corporation Finance issued a Statement on Tokenized Securities that set out two categories, including "securities tokenized by or on behalf of issuers." SEC The statement did not explain how issuer-backed tokens fit with third-party tokens made without the company's permission.
Nasdaq is already adjusting its systems. Under filing SR-NASDAQ-2025-072, all existing exchange routing strategies, the preset instructions for sending orders to find the best price, would be available for orders in tokenized securities. Nasdaq filing
SEC Commissioner Hester Peirce had made the case for the idea in July 2025, saying tokenization "may facilitate capital formation and enhance investors' ability to use their assets as collateral." SEC
Looking at what this means for market structure, issuer consent is now the sticking point. Tokenized shares only work if a share held in custody and a token moving between wallets can be swapped freely. CoreWeave and Broadcom are challenging that idea, raising practical questions about shareholder lists, dividend and split handling, voting, disclosure duties, and who controls how many shares are shown as outstanding.
In my view, the next questions for lawyers and traders are about limits and plumbing. Caps on symbols and volume restrict how large a token venue can get before it runs into normal stock-market rules on quotes, trade-throughs, and clearing. AMM trading adds another wrinkle, because selling from a pooled inventory works differently from a central order book with protected quotes. Routing helps connect the two, but it does not settle final ownership, failed trades, or who counts as the owner.
The broader context here is that the SEC is learning while trading runs. The exemption lets limited trading continue while the agency takes comments. Expect attention on custody chains, how tokens are created and redeemed for real shares, and whether an issuer's objection can block its symbol. For now, the rules exist, and issuer pushback is the first real test.
