Synthetic Tokenized Stocks Threaten American Investor Trust, Warns Promethum Founder

Aaron Kaplan, founder of Promethum, has issued a stark warning that synthetic tokenized stocks are bad for American investors. In a commentary published on CoinDesk, Kaplan argued that the U.S. markets are the envy of the world because investors trust that whoever owns a share owns it fully, and that synthetic models cheapen that trust.

Kaplan, whose firm Promethum operates in the digital asset space, emphasized that synthetic tokenized stocks—which provide exposure to price movements without granting actual ownership—shortchange U.S. investors and undercut the issuer-led capital markets model. He did not provide specific data or examples, but his critique aligns with long-standing concerns among regulators and traditional finance experts about the risks of tokenized derivatives.

The comments come amid a broader debate over the tokenization of real-world assets, including stocks, which proponents say can increase liquidity and accessibility. However, critics like Kaplan warn that such innovations may erode investor protections and market integrity. The U.S. Securities and Exchange Commission has yet to issue clear guidance on synthetic tokenized equities, leaving the market in a regulatory gray area. Next steps may include increased scrutiny from policymakers as tokenization gains traction.