NYSE partners warn that "synthetic stock tokens" may mislead retail investors and push for a regulated US stock token platform.

CoinFeed reported on May 6th, citing CoinDesk, that executives from ICE, OKX, and Securitize stated at the Consensus Miami conference that some offshore "synthetic stock tokens" lack authorization from the issuer and do not represent actual equity, yet they use the names of listed companies and exploit regulatory arbitrage. This could lead to price discrepancies of several times across different markets due to corporate actions such as stock splits, increasing risk for retail investors. ICE, the parent company of the NYSE, is advancing a regulated US stock tokenization platform, initially featuring pre-deposited tokens and stablecoin trading, no leverage, and self-custody capabilities to allow regulators and institutional investors to assess the structure. OKX stated that it will not launch synthetic stock tokens until compliant, issuer-backed tokenized securities are available.