tokenization @avalabs 🔺 || former @troweprice || @williamandmary || Opinions are my own & not the views of my employer || 🇺🇸
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Joined January 2021
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1/ As the crypto bull market accelerates, builders, investors, and enjoyoors face a crucial question: what blockchain architecture will fuel the next wave of innovation?
The answer is clear—purpose-built blockchains on @avax will lead the way. Here’s why. 👇
🔗 Full deep dive: medium.com/@ovwoude/swiss-ar…
Collaboration + competition are increasingly existing under the @SECGov innovation exemption
ICE is partnering with OKX while other crypto native or fintech players (Perpetuals.com, TSV LLC) pursue independent venues
Structure allows both JVs & standalone experiments under identical temporary rules, which may generate both cooperation & rivalry for the limited volume the exemption permits
🚨NEW: The @SECGov says three firms have notified the agency of their intent to operate tokenized securities venues, or TSVs, under its new innovation exemption.
📌TSV LLC is owned by Ali Abrar and Ryan Trinkle, co-founders of Obsidian Systems. Trinkle also sits on the @CantonFdn board. TSV plans to operate on @CantonNetwork.
📌OKXICE is a joint venture between @okx and @ICE_Markets. It plans to operate on X Layer, OKX’s Ethereum Layer 2.
📌Kephas Corp. is @Perpetuals_com’s U.S. subsidiary, led by founder @PGruhnPDC, the former head of FTX Europe. Its venue plans to run on Kronos X Public, a public, permissionless Layer 2, using permissioned trading pools.
The SEC says inclusion on the list doesn’t mean a firm has met the exemption’s conditions.
Traditional players are choosing partnerships w/ cryptonatives
ICE did not launch a standalone tokenized venue; it formed OKXICE... suggesting large market operators see value in crypto native tech, distribution, or on-chain expertise while still wanting a controlling / co-equal role
Different models and tech stacks are emerging for TSVs.
> OKXICE is targeting permissioned Uniswap v4 pools on its own X Layer chain with stablecoin pairs (USDC, USDT, etc.).
> TSV LLC is pointing at the Canton Network.
> Perpetuals.com is using an Ethereum-compatible L2 (Kronos).
Will be interesting to see early filers stress-testing multiple approaches in parallel
THE BLOCK: SEC lists three firms that have filed notices to operate tokenized securities venues under its Innovation Exemption: TSV LLC, OKXICE TSV, and Perpetuals[dot]com (Kephas Corporation).
"Inclusion on the list does not mean that the person meets the definition of 'Tokenized Securities Venue' under the Innovation Exemption Order, nor does it mean that the person has established that it meets the conditions of the TSV Exemption," the SEC noted.
Olivia Vande Woude retweeted
On July 7 we had Olivia Vande Woude ( @cryptoreine) of Ava Labs on Stabledash Live.
On Oct 2, South Korea moved to bring stocks onchain, with its securities depository building on Avalanche. The next day, we resurfaced her clip.
Time between: 87 days.
xitter.cf/stabledash/status/2106…
Korea's FSC is bringing its central securities depository onchain, with KSD building on Avalanche / @avax
@cryptoreine, Tokenization Lead at @AvaLabs, told us in July why an
onchain register matters:
"The issuers or their transfer agents reflect ownership directly onchain."
"There aren't twin or parallel representations of the same asset. You don't have to go through the traditional process to date of reconciling the onchain with the offchain records."
xitter.cf/avax/status/2106113860…
Olivia Vande Woude retweeted
JUST IN: Charles Schwab identifies Avalanche as a leader in RWAs and institutional use cases.
New research from @CharlesSchwab points to custom L1s and high-utility financial activity as key differentiators for the network.
Hosting our @avax breakfast in nyc the 29th, with panelists from @aave, @Securitize, @usat, Intrinsic Capital
Learn about RWA utility on Avalanche…
Who’s joining 👀
According to earnings calls, instits are treating tokenization as an infra/capability build as opposed to waiting for perfect statutory clarity
@GoldmanSachs multi-year GS DAP platform, tokenized bonds, mmfs, etc. are examples of building the rails first (even while describing volumes as small)
It's 2026 and sell-siders are telling @GoldmanSachs that tokenization could "nip a the core of [their] markets business"
earnings calls are getting more interesting!
Agree with @TD_Canada's Reid Noch here. ICE/OKX TSV may be the most credible model coming to mkt, but the caps keep it a small scale pilot. NYSE’s tokenized ATS is the more consequential bet bc it works inside the existing perimeter & goes after the plumbing (issuance, settlement, ownership records) vs adding a new venue.
The caps for a TSV make low volume a design feature vs. a tell of demand; a sandbox with ceilings will look small by construction.
The better inquiry for the next 12-24 mths is what the data show about price quality, settlement reliability, etc. as this info could alter the caps.
Nine U.S. Companies Object to Tokenized Trading of Their Shares on OKXICE
According to an OKXICE public notice dated October 15, the platform has received issuer objections from nine companies — Cerebras, AppLovin, Applied Digital, Rocket Lab, CoreWeave, Verizon, Applied Optoelectronics, Broadcom and UnitedHealth — meaning their shares will not be offered for tokenized trading on OKXICE TSV. OKXICE LLC is 50% owned by ICE, the parent company of the New York Stock Exchange, and 50% by OKC USA, and plans to offer 24/7 tokenized U.S. equity trading through a permissioned Uniswap v4 AMM on XLayer.
The leg up in cross-border payments has always been the network: branches, correspondent relationships, local licenses. On its Q3 earnings call, @WellsFargo pitched tokenized deposits as a way to compete w/o that intl footprint. If that works, the advantage gets a lot smaller.
Wells Fargo's tokenized deposit platform, built on Cosmos technology, is now live in production, its CFO said on the Q3 earnings call. Payments reach the beneficiary in 2 minutes or less, down from a day or two.
@cosmos
Tokenization is how a bank w/o a global network competes on cross border payments
@WellsFargo lacks the international branch network of its global peers. Their CFO described tokenized deposits as a way to reach the cross-border mkt “without having to make significant investments of putting people locally in a bunch of different places around the world.”
If tokenized rails let a bank w/o a global footprint match 1 that has it, correspondent banking incumbents have the most to lose
Not surprised to see @WellsFargo bring up tokenized deposits in their Q3 earnings call remarks.
“We believe tokenized deposits can deliver important benefits for the businesses we serve.”
They’re another way for WFC to protect, grow its deposit base against competition from mmfs, fintechs, etc. Features (programmability, faster settlement) can make the bank’s deposits more sticky for corporate clients, which helps support growth w/o having to just compete on rates
The Innovation exemption’s issuer-protection mechanism is being actively used rather than ignored
9 companies have already objected (including Verizon, UnitedHealth/UNH, Broadcom/AVGO, CoreWeave, AppLovin, and others) of the original ~63-name OKXICE list
The @SECGov Innovation Exemption opened a path for 3rd-party platforms to offer tokenized stocks. It also gave every issuer a 30-day window to block its own listing with a single letter, & the largest names are using it.
OKXICE is the 1st test case. 9 issuers have objected so far, including CoreWeave, Broadcom, Verizon, UnitedHealth Group, AppLovin, and Rocket Lab, and 8 of the 63 stocks in its original proposal are now off the table.
I think the objections are rational: an unaffiliated, always on market in your shares sits outside your IR & shareholder communication channels... & management gets little in return for allowing it.
My takeaway is that while infrastructure for tokenized equities is ready, what launches onchain will depend on which issuers stay silent, & that points toward issuer-sponsored models and the transfer agent as the stronger path for tokenized stocks.
My breakdown below 👇
The @SECGov Innovation Exemption looks like a green light for 3rd-party tokenized stocks. In practice it hands every issuer a free veto, & so far, big names are using it.