Tokenized stocks shouldn't require issuer approval, says Robinhood chief executive
According to Robinhood's CEO Vlad Tenev, company issuers need only participate when tokenized offerings alter obligations or shareholder privileges, not when separate share-backed instruments are established.
According to Robinhood chief executive Vlad Tenev, corporations should not possess veto authority over tokenized equity products that leave shareholder privileges, issuer responsibilities, and a corporation's official share registry unchanged.
Through a statement posted on X this past Friday, Tenev articulated that the necessity for issuer approval hinges on whether a tokenized offering modifies the privileges connected to the shares underneath or establishes fresh responsibilities for the corporation or the transfer agent it employs. Should this be the case, he indicated the issuer's participation would be warranted.
Nevertheless, Tenev emphasized that when the product establishes a distinct financial vehicle that maintains or references shares that can be freely transferred while leaving the issuer's privileges, responsibilities, or registered shareholder information untouched, obtaining issuer approval should not be necessary.
These remarks followed criticism from AMC Entertainment chief executive Adam Aron regarding Robinhood's tokenized equity products on Sept. 4, where Aron stated that AMC maintained no association with these products and indicated the company would request its securities legal team to examine them.
Tenev explained that Robinhood Stock Tokens utilize a third-party framework, featuring independently issued vehicles supported on a 1:1 basis by shares underneath. These products deliver financial exposure to equities and exchange-traded funds while avoiding any modifications to an issuer's capitalization table or privileges connected to the company's shares.
Going onchain shouldn't give the issuer a veto it never had offchain
Vlad Tenev