Offshore synthetic tokenized stocks are creating significant market and retail risks, according to executives from Intercontinental Exchange (ICE), OKX and Securitize, who spoke at Consensus Miami on Tuesday. The warnings come as NYSE moves ahead with a regulated platform for tokenized U.S. equities, positioning the exchange to offer 24/7 trading and onchain settlement of tokenized stocks and ETFs pending regulatory approval.

Market Context

The tokenization of real-world assets has accelerated across TradFi and crypto markets, with major institutions racing to capture share in what many view as the next evolution of securities infrastructure. NYSE announced in January it was developing a platform for tokenized U.S.-listed stocks and ETFs, while ICE struck a strategic partnership with OKX giving the crypto exchange's customers access to ICE futures and NYSE tokenized equities. Securitize was tapped to act as digital transfer agent for issuer-backed tokenized securities.

Analysis

Michael Blaugrund, who works on strategic initiatives at ICE, said NYSE's first version will start with pre-funded tokenized equities trading against stablecoins—a model he described as "not the sexiest way" to build a market but one that gives issuers, investors and regulators a structure they can evaluate before more complex features such as leverage or self-custody. The approach contrasts sharply with offshore synthetic products, which executives say are exploiting regulatory gaps.

Carlos Domingo, founder and CEO of Securitize, flagged that some offshore tokenized stock products use public-company names without issuer approval and do not represent the underlying equity. "For some stocks there\u2019s like five different tokenized versions," Domingo said, citing Coinbase as an example where multiple wrappers exist but none actually represent equity in the company. The risk becomes acute during corporate actions—he noted witnessing one tokenized stock wrapper trade at prices differing by five times across markets after a stock split.

Haider Rafique, OKX\u2019s global managing partner officer, emphasized the exchange has not launched synthetic tokenized securities and does not plan to move before regulated supply is in place. "We\u2019re not selling a promissory note," Rafique said. "We\u2019re actually selling the underlying asset."

Domingo identified regulatory arbitrage as the core issue: offshore issuers create wrappers in permissive jurisdictions and claim they are not targeting the U.S. or Europe, yet permissionless tokens can still flow back into those markets. The SEC has sharpened its focus on distinguishing between true tokenized ownership and synthetic exposure, stating that issuer approval is required for genuine tokenized stock ownership.

Key Numbers

- 5 different tokenized versions exist for some stocks (e.g., Coinbase) with none representing actual equity

- One instance saw tokenized stock prices differ by 5x across markets following a stock split

- NYSE platform expected to support fractional trading, immediate settlement and dollar-denominated orders

- ICE partnership with OKX subject to regulatory approvals

What to Watch

The SEC\u2019s enforcement posture on synthetic versus true tokenized securities will be critical for institutional participants. NYSE\u2019s launch timeline remains pending regulatory approval, while the distinction between offshore synthetic wrappers and issuer-backed tokens will likely define market structure debates heading into year-end. Blaugrund characterized the shift to tokenized securities as inevitable: "It\u2019s now \u2018when,\u2019 not \u2018if.\u2019"