ICE and OKX Launch Regulated US Broker Dealer With Cuomo Co-Chair

Intercontinental Exchange and crypto exchange OKX launched a joint venture that will operate as a US-regulated broker dealer and futures commission merchant. Former New York Governor Andrew Cuomo will co-chair the venture alongside Trabue Bland, ICE's senior vice president of futures exchanges.

The venture lets OKX's US and international customers access ICE futures contracts and the New York Stock Exchange's planned tokenized equities markets.

Cuomo has advised OKX on policy matters since 2022. That period included the exchange's $504 million settlement with the Department of Justice over anti-money-laundering violations, Bloomberg reported.

"The next chapter of financial markets will be defined by how well innovation and government regulation can move forward together," Cuomo said in a statement. "This partnership brings together OKX's world-class blockchain technology and ICE's trusted market infrastructure to help build a more modern, transparent, and resilient financial system for the future."

"ICE's global benchmarks and regulated market technology have earned the trust of institutions and traders everywhere," the joint venture said. "Now, through our partnership with OKX, we are working towards extending that reach to OKX's 120 million retail traders."

The venture builds on ICE's $25 billion strategic investment in OKX announced in March. ICE also invested roughly $2 billion in prediction market Polymarket and participated in stablecoin platform Circle's $222 million Arc presale alongside BlackRock and Apollo.

For OKX, the venture creates a regulated on-ramp to US derivatives and tokenized securities. The exchange's 120 million retail traders gain access to products under SEC and CFTC oversight. That oversight includes customer fund segregation and anti-money laundering compliance. OKX paid $504 million to the DOJ for compliance failures, Bloomberg reported. The joint venture now places OKX under broker-dealer and FCM regulation.

Cuomo's resignation in 2021 after sexual harassment allegations he denied adds a public-relations dimension. His co-chair role may help with regulatory navigation. The venture's execution depends on meeting capital requirements and clearing SEC and CFTC reviews.

ICE's core exchange business remains dominant. The joint venture is a separate entity. The reputational risk exists if OKX faces further enforcement actions. ICE currently holds an AlphaScala Alpha Score of 36 out of 100, reflecting mixed technical and fundamental signals on its ICE stock page.

The venture's first milestone is the timing of its FCM registration and the launch of tokenized equity trading on NYSE's platform. Both must clear regulatory approvals before serving customers.