Key facts
- Robinhood CEO Vlad Tenev said issuers should not have veto power over tokenized stock products that do not change shareholder rights or company obligations.
- Tenev stated that issuer consent is only required if a tokenized product alters the rights of underlying shares or creates new obligations for the company.
- Robinhood Stock Tokens use a third-party structure with instruments backed 1:1 by underlying shares.
- AMC Entertainment CEO Adam Aron criticized Robinhood's tokenized stock offerings on September 4.
Robinhood CEO Vlad Tenev asserted that companies should not possess veto power over tokenized stock products that do not modify shareholder rights, issuer obligations, or a company's official stock ledger. In a post on X on Friday, Tenev explained that the necessity of issuer consent hinges on whether a tokenized product impacts the rights associated with the underlying shares or imposes new duties on the company or its transfer agent. If such changes occur, he believes the issuer should be involved.
However, Tenev argued that if a product establishes a distinct financial instrument that holds or references freely transferable shares without altering the issuer’s rights, obligations, or shareholder record, then issuer consent should not be mandated.
These remarks followed criticism from AMC Entertainment CEO Adam Aron on September 4, who stated that AMC had no affiliation with Robinhood's tokenized stock offerings and intended to seek legal review. Tenev further elaborated that Robinhood Stock Tokens are structured through a third party, with separate instruments backed one-to-one by underlying shares. These products offer economic exposure to stocks and exchange-traded funds without affecting an issuer’s capitalization table or the rights tied to its shares. "Going onchain shouldn’t give the issuer a veto it never had offchain," Tenev stated.