Robinhood CEO says issuers should not have veto over tokenized stocks
Robinhood CEO Vlad Tenev said issuers should be involved if tokenized products change shareholder rights or company obligations, but not when they create separate instruments backed by shares.
Robinhood's CEO, Vlad Tenev, has stated that issuers should not have the power to veto tokenized stocks unless they alter shareholder rights, company obligations, or the company's official stock ledger. In a recent post on X, Tenev clarified that the decision regarding issuer consent hinges on whether the tokenized product modifies the rights connected to the underlying shares or imposes new obligations on the company or its transfer agent.
If it does, Tenev believes the issuer should indeed be involved in the process. However, Tenev made it clear that if the tokenized product creates 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 necessary.
These remarks followed AMC Entertainment CEO Adam Aron's criticism of Robinhood's tokenized stock offerings on September 4th. Aron, who has no affiliation with the products, expressed his intention to seek legal review of them. Tenev emphasized that Robinhood Stock Tokens utilize a third-party structure, with instruments issued separately and backed 1:1 by the underlying shares.
These products offer economic exposure to stocks and exchange-traded funds without modifying an issuer's cap table or the rights associated with its shares. "Going onchain shouldn't give the issuer a veto it never had offchain," Tenev commented.
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