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NYSE tokenization partners warn synthetic stock tokens could mislead retail traders
Key takeaways
- That model is “not the sexiest way” to build a market, Blaugrund said, but gives issuers, investors and regulators a structure they can evaluate before more complex features such as leverage or self-custody.
- Carlos Domingo, founder and CEO of Securitize, said offshore tokenized stock products are taking the opposite approach.
- “For some stocks there’s like five different tokenized versions,” Domingo said, citing Coinbase as an example. “None of them actually represent equity on Coinbase.”
Michael Blaugrund, who works on strategic initiatives at ICE, the owner of the New York Stock Exchange (NYSE), said during a panel at Consensus Miami that NYSE’s first version will start with pre-funded tokenized equities trading against stablecoins.
That model is “not the sexiest way” to build a market, Blaugrund said, but gives issuers, investors and regulators a structure they can evaluate before more complex features such as leverage or self-custody.
Carlos Domingo, founder and CEO of Securitize, said offshore tokenized stock products are taking the opposite approach. Some use public-company names without issuer approval and do not represent the underlying equity, he said.
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