NYSE tokenization partners warn synthetic stock tokens could mislead retail traders
Executives from Intercontinental Exchange (ICE), OKX and Securitize warned that synthetic tokenized stocks are creating market and retail risks, as ICE moves ahead with a regulated platform for tokenized U.S. equities. Michael Blaugrund, who works on strategic initiatives at ICE, the owner of the New York Stock Exchange (NYSE), said during a panel at Consensus Miami that NYSEs first version will start with pre-funded tokenized equities trading against stablecoins. That model is “not the sexiest way” to build a market, Blaugrund said, but gives issuers, investors and regulators a structure they can evaluate before more complex features such as leverage or self-custody. Carlos Domingo, founder and CEO of Securitize, said offshore tokenized stock products are taking the opposite approach. Some use public-company names without issuer approval and do not represent the underlying equity, he said. “For some stocks theres like five different tokenized versions,” Domingo said, citing Coinbase as an example. “None of them actually represent equity on Coinbase.” The risk is clearest during corporate actions, Domingo said, as he saw one tokenized stock wrapper trade at prices that differed by five times across markets after a stock split. Haider Rafique, OKXs global managing partner officer, noted the exchange has not launched synthetic tokenized securities and