NYSE parent ICE and Securitize warned at Consensus Miami 2026 that offshore synthetic tokenized stocks are misleading retail investors and creating market risks.
Executives from ICE, OKX, and Securitize said these synthetic tokens often do not represent underlying equity and sometimes use public company names without issuer approval. Securitize CEO Carlos Domingo noted that some stocks have multiple tokenized versions—“for some stocks there’s like five different tokenized versions”—none of which confer actual equity or issuer-backed ownership.
Michael Blaugrund of ICE described the NYSE’s alternative approach: a regulated tokenized equity platform that will start with pre-funded tokens trading against stablecoins. He acknowledged this model is “not the sexiest way” to build a market, but argued it gives issuers, investors, and regulators a structure to evaluate before introducing features like leverage or self-custody.
The warning comes as tokenized equities gain momentum. Proponents such as Coinbase CEO Brian Armstrong highlight benefits like expanded international access, fractional ownership, and real-time settlement. However, a parallel offshore market of synthetic wrappers—tokens that provide only price exposure without voting rights, dividends, or ownership—threatens trust in the space.
The Consensus panel served as a public signal from NYSE and partners that regulated tokenized equities and unregulated synthetic tokens are fundamentally different products and that the latter can present significant risks to retail investors and broader market integrity.