At the Consensus Miami 2026 conference, executives from the NYSE parent company Intercontinental Exchange (ICE) and tokenization platform Securitize issued a stark warning about offshore synthetic tokenized stocks. They argue that these products are misleading retail investors and pose significant risks to financial markets.
Michael Blaugrund from ICE and Securitize CEO Carlos Domingo highlighted that many offshore tokenized stocks do not represent actual equity in the underlying companies. Domingo noted that for some stocks, there are up to five different tokenized versions circulating, none of which confer ownership rights, dividends, or voting power. These tokens merely offer synthetic price exposure, yet they often use company names without authorization.
The executives contrasted this unregulated environment with the NYSE’s own approach to tokenized equities. The exchange plans to launch a regulated platform starting with pre-funded tokens that trade against stablecoins. While Blaugrund admitted this model is “not the sexiest way” to build a market, it provides a clear structure for issuers, investors, and regulators to evaluate before introducing more complex features like leverage or self-custody.
The tokenized equity market is growing rapidly, with legitimate players like Coinbase pushing for broader access and real-time settlement. However, the proliferation of synthetic tokens undermines trust in the category. The NYSE’s message at Consensus was clear: regulated tokenized equities and unregulated synthetic tokens are fundamentally different products, and investors should be wary of the latter.