Senior executives from Intercontinental Exchange (ICE), OKX, and Securitize issued a stark warning at Consensus Miami that many synthetic tokenized stocks do not represent actual equity and could endanger retail traders. The caution comes as ICE, the owner of the New York Stock Exchange (NYSE), advances its own regulated platform for tokenized U.S. equities, designed to offer pre-funded trading against stablecoins with clear issuer backing and regulatory oversight.
Michael Blaugrund, who leads strategic initiatives at ICE, explained that NYSE’s first version will require pre-funded tokenized equities, a model he called “not the sexiest way” but one that gives issuers, investors, and regulators a structure to evaluate before adding complex features. He compared the shift to the historic move from floor trading to electronic markets, stating it’s “now ‘when,’ not ‘if.’”
Carlos Domingo, founder and CEO of Securitize, underscored the dangers of offshore synthetic stock tokens that use public-company names without permission and lack any claim on the underlying shares. He cited multiple tokenized versions of Coinbase stock, noting that “none of them actually represent equity on Coinbase.” Domingo highlighted the confusion during corporate actions, recounting an instance where one tokenized stock wrapper traded at prices differing by five times across markets after a stock split.
Haider Rafique, OKX’s global managing partner officer, stated the exchange has not launched synthetic tokenized securities and will not move until regulated supply is in place. “We’re not selling a promissory note,” he said. “We’re actually selling the underlying asset.”
The warnings follow recent controversies, including Robinhood’s OpenAI stock tokens that were not backed by real shares and were not approved by the company. Domingo described the problem as regulatory arbitrage, where offshore issuers create wrappers in permissive jurisdictions and claim they do not target the U.S. or Europe, yet permissionless tokens can still flow back into those markets. The SEC has sharpened its focus on the distinction between true tokenized ownership and synthetic exposure, insisting that issuer approval is required for genuine tokenized stock ownership.
As previously announced, NYSE is developing a platform for 24/7 trading and onchain settlement of tokenized U.S.-listed stocks and ETFs, pending regulatory approval. ICE later formed a strategic partnership with OKX to grant the crypto exchange’s customers access to ICE futures and NYSE tokenized equities, and tapped Securitize to act as a digital transfer agent for issuer-backed tokenized securities.
