NVIDIA Stocks Available for 24-Hour Trading in the U.S.

[Block Media Reporter Myung Jeong-seon] A market is being developed where over 60 representative U.S. stocks, including NVIDIA, Tesla, Apple, and Microsoft, can be traded 24 hours a day on the blockchain. This will be done by issuing stocks in token form and exchanging them for stablecoins, bypassing traditional brokerage accounts and order books.

A joint platform called 'OKXICE', initiated by digital asset exchange OKX and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), is working on establishing a tokenized stock market. This is an attempt to transfer the stock trading structure of traditional financial markets to a blockchain-based system.

Tokenization of Over 60 Stocks Including NVIDIA, Tesla, and Apple

According to regulatory documents submitted by OKXICE on the 5th (local time), it has been confirmed that over 60 U.S. securities are included for trading in tokenized form.

The list includes NVIDIA, Tesla, Apple, Microsoft, Amazon, and Alphabet. Digital asset-related companies such as Coinbase, Circle, and Robinhood are also included. JP Morgan, Goldman Sachs, Walmart, Netflix, Reddit, and Boeing are also among the candidates for trading.

However, just because a stock is included in the documents does not mean that trading for all of them is confirmed. Companies can raise objections to the inclusion of their stocks in the tokenization process for a certain period.

TD Securities stated in a report that "no stock can be assumed to be included by default." Stock tokenization is a structure that converts existing stocks into digital tokens that can be traded on the blockchain.

For example, instead of purchasing NVIDIA stocks through a traditional brokerage, an investor would buy a token representing rights to NVIDIA stocks.

According to the documents submitted by OKXICE, the actual stocks underlying the tokens will be held by a registered broker-dealer at a 1:1 ratio. One NVIDIA token will be backed by one actual NVIDIA share.

Token holders will also be entitled to economic rights and shareholder rights, such as dividends and voting rights, similar to existing shareholders.

Using Stablecoins Instead of Dollars... Liquidity Pools Instead of Order Books

The biggest difference lies in the trading method.

Investors will buy and sell tokenized stocks using stablecoins linked to the value of the dollar instead of using dollars. OKXICE plans to support payment methods such as USDC, USDT, and USDG.

Unlike traditional stock exchanges, the platform will not directly connect buy and sell orders from an order book.

Instead, it will apply a structure where tokenized stocks and stablecoins are placed in a blockchain-based liquidity pool, and investors will trade against that pool.

For example, when an investor buys an NVIDIA token, the number of NVIDIA tokens in the liquidity pool decreases while the amount of stablecoins increases. This results in an increase in the price of NVIDIA tokens. Conversely, selling tokens will create downward pressure on the price.

This system is known as an Automated Market Maker (AMM) in the digital asset market. It determines trading prices using mathematical formulas or rules set by market makers.

TD Securities analyzed that the active adjustment of prices and holdings by professional market makers may be more important in stock trading than traditional AMMs.

Market makers can present prices based on real-time market data and their own holdings, or combine multiple liquidity pools into a single trading environment, thereby implementing a market structure similar to existing stock exchanges.

Trading on OKXICE is expected to take place on the blockchain 'XLayer' developed by OKX. The liquidity pool will utilize technology from the decentralized exchange Uniswap.

Trading Available on Weekends... Price Discrepancies as a Major Variable

Another difference from the existing U.S. stock market is the trading hours.

OKXICE plans to support trading 24 hours a day, seven days a week. This means that tokenized stocks of NVIDIA and Tesla can be bought and sold even during the nights or weekends when the U.S. stock market is closed.

For example, NVIDIA tokens can be traded on Sundays when the Nasdaq is closed. At this time, the price will not simply follow the last trading price of the Nasdaq but will be determined by the buy and sell demand in the blockchain liquidity pool.

As a result, there is a possibility that price discrepancies between token prices and actual stock prices may occur when the U.S. stock market is closed.

Transactions will not be completely anonymous. Investors must undergo identity verification and anti-money laundering procedures before trading.

The value of the tokens is linked to actual U.S. stocks, but the trading system itself is closer to that of a digital asset exchange than a traditional securities market.

However, it remains uncertain whether institutional investors will participate in the market in large numbers in the short term.

TD Securities predicts that the short-term impact on institutional investors will be limited, as U.S. investors can already trade stocks efficiently through the existing securities market. The lack of active interest from companies in tokenizing their stocks and regulatory uncertainties are also seen as obstacles.

The fact that the relevant regulatory exemptions are not permanent but apply for a period of five years may also limit the participation of large financial firms. Even if financial companies invest significant costs in building the system, it is difficult to rule out the possibility of changes in the regulatory environment in the future.

Ultimately, the key is liquidity. Especially during the nights and weekends when the U.S. stock market is closed, sufficient participation from investors and market makers is necessary to prevent tokenized stock prices from deviating significantly from actual U.S. stock prices.

Harvey Lee, founder of Tokenization Insights, evaluated that the core of this attempt is not merely the emergence of another tokenized stock exchange. It could serve as a case study to test which model among various models moving U.S. stocks to the blockchain can scale up the fastest and establish a new market structure.

Whether the advantages of 24-hour trading and blockchain payments translate into actual investment demand will depend on future liquidity, price stability, and regulatory frameworks.

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