NYSE parent ICE and Securitize warned at Consensus Miami 2026 that offshore synthetic tokenized stocks are misleading retail investors and creating serious risks for the broader market.

NYSE executives and partners raised the alarm at Consensus Miami 2026 on Wednesday over a wave of offshore synthetic tokenized stocks they said are creating market risks and misleading retail investors.

Michael Blaugrund of ICE, the NYSE’s parent company, and Securitize CEO Carlos Domingo both warned that products operating outside regulated frameworks are exploiting the tokenization trend at retail investors’ expense.

“For some stocks there’s like five different tokenized versions,” Domingo said at the panel. “None of them actually represent equity on Coinbase,” using the exchange as a concrete example of how public company names are being used without issuer approval by offshore token products that offer only synthetic price exposure.

Blaugrund said NYSE’s own approach takes the opposite path. The exchange’s first tokenized equity product will start with pre-funded tokens trading against stablecoins.

That model is “not the sexiest way” to build a market, Blaugrund acknowledged, but gives issuers, investors, and regulators a structure they can evaluate before more complex features like leverage or self-custody are introduced.

The warning lands as the tokenized equity market grows rapidly alongside legitimate players. As crypto.news reported, Coinbase CEO Brian Armstrong has pointed to tokenized stocks as a way to expand international access, enable fractional ownership, and allow real-time settlement. But a parallel offshore market of synthetic wrappers, which confer no voting rights, dividends, or ownership, is undercutting trust in the category.

For NYSE, the Consensus panel was a public signal that regulated tokenized equities and unregulated synthetic tokens are not the same product.