Robinhood CEO says tokenized stock issuers must not have veto power if rights don't change
Vlad Tenev argues companies cannot block digital shares unless the deal alters shareholder rights or creates new obligations.
Robinhood CEO Vlad Tenev stated that issuing companies should not hold veto power over tokenized stock products unless those products alter shareholder rights, issuer obligations, or the official stock ledger. In a Friday post on X, Tenev explained that issuer consent is only necessary if the digital instrument modifies the economic benefits attached to the underlying shares or establishes new duties for the company and its transfer agent. He argued that if the product merely creates a separate financial instrument referencing freely transferable shares without changing the issuer's record, no consent is required. "Going onchain shouldn't give the issuer a veto it never had offchain," Tenev said. These comments follow criticism from AMC Entertainment CEO Adam Aron regarding Robinhood's tokenized offerings on September 4, where Aron claimed AMC has no affiliation with the products and would have securities counsel review them. Tenev clarified that Robinhood Stock Tokens use a third-party structure backed 1:1 by shares, providing exposure to equities and funds without modifying an issuer's cap table.
