Domingo Sounds Alarm on Unregulated Tokenized Stocks

Carlos Domingo, CEO of Securitize, issued a stark warning to the tokenized stock market. In a recent Wall Street Journal piece, he described most tokenized stocks as unauthorized offshore paper with insider trading risks.

The problem is widespread, with some tokens showing price deviations of up to 300% from the actual underlying equity values. This lack of regulation and oversight has created a 'can of worms' that will eventually 'explode,' according to Domingo.

Securitize's approach differs significantly from other tokenization firms. The company, which listed on the New York Stock Exchange in July 2026, focuses on 'native, issuer-sponsored tokenization.' This means the company whose equity is being tokenized is involved in the process.

Domingo has been a vocal advocate for regulated tokenization pathways that bring digital securities under existing legal frameworks. He testified before Congress in 2024, highlighting the need for clearer rules around tokenized securities.